Uniform and integrated purchasing and contracting

30:10-01-02

The following sets forth current purchasing policies and procedures for all agencies under the jurisdiction of the Board of Regents for the Oklahoma Agricultural & Mechanical Colleges (Board).

(1)  Purchasing for all agencies under the jurisdiction of the Board shall be unified and integrated.  A Chief Procurement Officer (CPO) Oklahoma Agricultural & Mechanical Colleges responsible to the Board for all agencies shall coordinate these purchases.

(A)    The CPO, Oklahoma State University (OSU) and the OSU System, is designated as the Chief of Procurement for all agencies of this Board.

(B)    The Vice President for Administration and Finance, OSU and the OSU System, is authorized to appoint Directors of Purchasing within the OSU System as needed to provide continuity of business processes.  Any person so appointed would be responsible to the CPO, Oklahoma Agricultural & Mechanical Colleges, for all procurement actions and would have authority as delegated by the CPO, Oklahoma Agricultural & Mechanical Colleges. The CPO shall be authorized to prescribe unified and correlated forms and to promulgate uniform purchasing guidelines applicable to all institutions. All sole source contracts and contract disputes, not amicably resolved, will be handled by the CPO, Oklahoma Agricultural & Mechanical Colleges.

(C)  Added expenses of the CPO, Oklahoma Agricultural & Mechanical Colleges office in Stillwater resulting from services to agencies other than those comprising Oklahoma State University shall be prorated among all other agencies under this Board.

(D)  For all agencies, acquisitions or contracts greater than $25,000 must be processed on a requisition form through a Director of Purchasing as designated in 1.  (A) or (B) above.  Unified and correlated forms shall be used by all agencies. 

(2)  The President or chief administrative officer of each agency shall be responsible for preparing and presenting matters for Board of Regents approval as necessary, and for designating the funds to be used in payment of requisitions.

(3)  Regardless of funds used, advance approval by the Board of Regents is required for any expenditure of more than $250,000.  The Board approval limit will be $75,000 for all agencies under the Board unless the Board approves a higher limit. Institutional Presidents may request a Board approval limit in excess of $75,000 from the Board (up to $250,000) to be applied to their respective institution.  Such request must be in the form of an institutional Board agenda item and must include a Board Agenda Exhibit that describes approval authorities relative to the limit being requested (see attachments).  Purchase orders between $75,000 and the Institution’s Board approval limit will be reported to the Board of Regents quarterly by written report to the Chief Executive Officer (CEO).  Acceptance of bids which exceed by more than fifteen (15) percent of the estimate previously approved by the Board will require further Board approval.  Exempt from Board approval are expenditures in any amount for the following:

(A)  Food or items for resale

(B)  Bulk gasoline, oil and fuel

(C)  Utilities

(D)  Non-construction sponsored agreement contracts and expenditures

(E)  Refunds

(F)  Feed

(G)  Hotel reservations/activities, transportation, interpreters, group meals, event tickets, and the like, directly related and relevant to group student study and travel programs for educational credit.

(4)  Regardless of funds used, prior approval of the Board is required for:

(A) Any purchase of, or contract for, real property which exceeds the applicable expenditure limit set forth in (3) above. Board approval is not required for OSU System real estate purchases under $1 million where fair market value has been determined by market comparable property.

(B) Any lease of real property, whether as lessee or lessor, which exceeds the applicable expenditure limit set forth in (3) per year, or which is for a total duration, including options, of more than five (5) years.

Purchase or lease agreements are to be executed by the institution's President, or delegate.

(5)  Furniture or equipment for Presidents’ homes, regardless of source of funds:

(A)  Replacement and/or repairs of existing equipment are exempt from Board of Regents approval.  Repairs and replacements of existing equipment in excess of $5,000 per item will be reported to the Board of Regents quarterly by written report to the CEO.

(B)  New acquisitions in excess of $5,000 (excluding emergency utility/HVAC repairs/replacements) require prior Board approval.  New acquisitions between $250 and $5,000 per item will be reported to the Board of Regents quarterly by written report to the CEO.

(6)  Agency requisitions that exceed delegated thresholds shall be submitted to the CPO, Oklahoma Agricultural & Mechanical Colleges.

(7)  Requisitions which meet or exceed the Oklahoma statutory sole source amount, which by the specifications restrict the bidders to one (1) person or business entity, shall include a certificate and recite the reasons for such restricting specifications or other facts justifying the requested purchase.  The certificate must also include the statement, "We will not accept nor pay for any items not included and described in this requisition and certificate."

(8) Where an established Purchasing contract does not exist, acquisitions and contracts between the amounts of $10,000 and $25,000 shall be preceded by the solicitation of quotations by the Institution.  No acquisition or contract shall be made in excess of $50,000 without the submission of competitive bids (if available) and opened at a specified time and place, which shall be open to the public, or available online.  Acquisitions and contracts between the amounts of $25,000 and $50,000 shall be preceded by the solicitation of quotations obtained by the CPO, Oklahoma Agricultural & Mechanical Colleges or authorized delegate.  Acquisitions or contracts shall be awarded to the lowest and best or best value bid response.  In the event of tie lowest responsible bidders, the award of contract shall be determined by drawing lots.  When established purchasing contracts exist, purchases must be made from these contracts.

The competitive bid requirement shall not apply to:

(A)  Contracts for architectural, construction management, engineering, legal, and other professional services.

(B) Sole source purchases and items on which bids are not available.

(C)  Special requests, defined as those requests in which the Board is requested to deviate from its own policies and procedures.

(D)  Acquisitions related to textbooks, laboratory supplies, instructional materials, specialized laboratory equipment, and when grants specifically name items or services. 

(E)  Contracts/acquisitions with state, city or other government agencies.

(F)  Acquisitions of livestock, poultry and crops.

(G)  Hotel reservations/activities, transportation, interpreters, group meals, event tickets, and the like, directly related and relevant to group student study and travel programs for educational credit.  Trip requisitions in accordance with institutional policies and Board rules will be required to be submitted to the CPO, or designee, for processing prior to incurring any obligations for the trip.

(9)  The Board has approved of the use of certain “on-call” construction managers for small job construction contracts, as more fully specified in Board Rule 30:10-1-8 and Attachment C thereto.

(10) All purchases of insurance and public official bonds: Companies submitting bids must have a financial strength rating as defined in the latest edition of A. M. Best Ratings.  Ratings below B+ will require prior Board approval before acceptance.

(11) All agencies should use "State Contracts" negotiated by the State Central Purchasing Division in Oklahoma City, whenever agency needs can be served adequately and economically.  Requisitions submitted to the CPO shall so indicate if based on "State Contracts" giving the contract number and listing itemized prices as shown on the current contract.

(12) Whenever possible, purchases shall be combined for items of common use in the various agencies.  The CPO shall implement procedures to maximize bid quantities by consolidating all agencies’ requests to obtain optimal bid results when deemed beneficial.

(13) Whenever departments obtain quotations locally, copies of all quotations, or a tabulation showing itemized amounts for all quotations received and naming all firms contacted for quotations, shall be attached to the requisition form submitted to the CPO.

(14) Regardless of the fact that a vendor may be suggested, or local quotations obtained, other possible sources will be investigated by the CPO, as deemed appropriate, in order to encourage maximum competition and to obtain the best possible value for the OSU and A&M systems.

(15) All institutional participants in the procurement process are expected to file supplier payment claims expeditiously in accordance with sound business practices. Any supplier performance issues are to be reported promptly to the CPO for resolution.

(16) Purchases for the lease or rental of space and associated services from institutionally affiliated alumni associations and foundations, which are less than the institution’s Board approval limit, shall be exempt from Board approval.

Attachment A – Example Board Agenda Item

Approval to Establish a Board Purchasing Approval Limit In Excess of $75,000

In accordance with Board Policy OAC 30:10-1-2 (3) (insert institution’s name, including any constituent agencies, as applicable) requests Board approval to establish a Board approval limit of (insert dollar amount).  The institutional authority and responsibility purchase approval matrix supporting this request is found at Attachment B.         

Attachment B

Purchasing Authorization Matrix Based on $250,000 Board approval - Please click here.

Amended Date: 
June 18, 2004
October 27, 2006
March 4, 2010
April 23, 2010
January 20, 2012
October 24, 2014
March 4, 2016