Purchasing Procedure

Purpose:

This procedure outlines required processes for employee purchases of supplies, equipment, repairs, and miscellaneous items using university funds.

Procedure:

A. Method of Purchase:

Purchases may be made in one of three ways.

• Field order: Employees use a field order to purchase items when those items are received at the time and place of purchase. Field orders are approved in advance and require a receipt.

• University credit card: Employees use a university credit card for ongoing purchases of supplies and travel-related expenses.

• Purchase order: Employees submit a requisition within MarketPlace which then routes electronically for the appropriate approvals.

B. Bids or Quotes

Some purchases require bids or quotes prior to purchase. Quotes should include shipping charges and educational discounts. The requirements vary according to the estimated dollar amount of the purchase as detailed below:

• Purchases less than $2,000: Purchases may be made with a minimum of one (1) verbal, written, or faxed quote. This requirement may be waived in certain circumstances.

• Purchases from $2,000 to $24,999.99: Purchases require a minimum of one (1) written bid that includes detailed specifications, a specific date and time for submission, and the signature of the vendor. One (1) bid will be from a targeted vendor if practicable.

• Purchases from $25,000 to $49,999.99: Purchases require a minimum of two (2) written bids that include detailed specifications, a specific date and time for submission, and the signature of the vendor. One (1) bid will be from a targeted vendor if practicable.

• Purchases over $50,000: Purchases require sealed bids solicited by the WSU Business Office by publishing a two (2)-week notice in the Minnesota State Register. This notice states the time and place of receiving bids and contains a brief description of the subject matter.

• Purchases over $100,000: Purchases over $100,000 require system office approval.

C. Encumbrances:

Before making an obligation or purchase, employees encumber the funds, ensuring that there is sufficient balance in the account being used. Purchases or obligations made prior to encumbering funds are illegal and not eligible for payment until made valid, consistent with Minnesota Statute 16A.15, Subd 3. Employees who authorize or make payments that are not valid are liable to the state for the amount paid. An intentional violation of state statute 16A.15, Subd 3 is just cause for removal. The state does not indemnify third parties or hold them harmless, according to Minnesota Constitution Article XI, Section 1.

D. Prepayment:

Payments may not be made in advance, in compliance with Minnesota State statute 16A.41, Subd 1., except for the following:

• Software or software maintenance contracts for university-owned or leased computer equipment

• Sole source maintenance agreements

• Exhibit space

• Subscription fees for newspapers, magazines, and the Library of Congress

Additional purchasing guidelines are published on the WSU Business Office website.

Related Documents:

• Minnesota State Procedure 5.14.5 (Purchasing)

• Minnesota Statute 16A.15 Subd.3 (Accounting system; allotment and encumbrance)

• Minnesota Statute 16A.41 Subd.1 (Claims against state)

• Minnesota Statute 471.345 Subd 8 (Uniform Municipal Contracting Law)

• Minnesota Constitution, Article XI Section 1 (Appropriations and Finances)

• WSU Business Office website

Related definitions:

[2-10] Targeted vendors:

Authorizing Policy:

• 2-10 Purchasing Policy

History:

Date and Subject of Revisions: 08/18/22, 08/13/07.

Adoption date: 01/25/1977
Implementation date: 01/12/2024