Purchasing

Saint Paul College – A Community & Technical College purchasing is governed by Minnesota statues and policies of the Minnesota State Colleges and Universities. No purchasing at Saint Paul College may take place other than as described in statute, Minnesota State policy, and the procedures that follow.

A description of the Minnesota State policies is available in the Saint Paul College document center on the intranet (http://spcintra.saintpaul.edu/subsute/default.aspx) and through the Minnesota State homepage (http://www.Minnesota State.edu).

Reference: Minnesota State 5.14 & 5.14.5 MS 136F.581
MS 471.345

1. ​Per state statute and Minnesota State policy, all purchases require an approved encumbrance, or purchase order, in the financial system prior to payment. An approved encumbrance is obtained primarily through the initiation and approval of a Requisition Form. If consistent with law, policy and financial requirements, the requisition may result in issuance of a purchase order, which is a binding legal agreement between the State and the vendor. Unless delegation of authority is provided, all requisitions must be submitted by the budget authority.
   
2. The College has several alternative purchasing mechanisms: (a) a purchasing credit or credit card can be obtained with approval from the budget authority and the Vice President of Finance and Operations. Refer to Saint Paul College Policy 07.03.01.0 and Procedure 07.03.04.1; (b) a blanket purchase order can be obtained with approval from the budget authority and the business office; and (c) a Field Purchase Order (FPO) can be obtained with approval from the budget authority and the business office. Use of the “FPO” is limited to specific individuals, who are delegated to purchase certain specific items up to $1,500 per purchase. State law and policy do not allow purchase of item over $1,500 by staff outside the Business Office, largely to ensure compliance. Direct purchasing (“FPO” purchases) up to the $1,500 level are by authorized staff only, and limited to supplies and 
   repairs. The College reserves the right to remove “FPO” purchasing authority for non-compliance by any staff member having such temporary purchasing rights.
   
3. All equipment items and all items costing over $1,500 must be purchased through the use of a Requisition Form. The requisition must be completed in electronic form.
   
4. Completion of a requisition form, including all necessary approvals does not authorize a purchase. That is done only by appropriate staff in the Business Office, through issuance of a State of Minnesota purchase order after necessary encumbrance and other controls are completed.

Approval Sequence

1. Faculty-or staff requisitioner initiates and fully completes electronic purchase requisition with specifications and emails to Dean or budget authority for approval.
   
2. Dean or budget authority reviews and approves purchase requisition.
   
3. If proposed instructional purchase requisitions are over $25,000, Dean emails the Vice President of Academic Affairs for her/his approval.
   
4. Purchase requisition with electronic email approvals from all required managers emailed to requisitions@saintpaul.edu.
   
5. Business Office completes a required Request for Bid (RFB) process when necessary and awards all purchases in compliance with Minnesota State Board policy. This may or may not result in an award to the vendor listed on the original requisition.
   
   Note: Purchase requisitions with incomplete/inaccurate information, insufficient budgets, or that lack the necessary quotes, bids or proposals as mandated by Minnesota State’s threshold policies will be returned to the budget authority for correction. Before submitting purchase requisitions to the Purchasing Technician, the Budget Authority should verify that there are sufficient funds in the cost center’s budget. Arrangements should be made with the Budget Director if there is insufficient budget
   available before submitting to the Business Office.

Computer-Related Purchases

• If a purchase requisition is computer-related, it must be reviewed by technology staff and signed-off by the Vice President of the respective area, and Chief Information Officer, or his/her designee. The purchase requisition should provide the employee’s name, room number, and cost center.
  
• The IT Department will review for compatibility, get quotes and send to the Business Office to place the order.
  
• This evaluation or review is necessary because there may be infrastructure and support requirements existing outside the department proposing the purchase. There also may be Minnesota State system technology policies/procedures, and other factors, concerning which the initiating department may not be knowledgeable. If there are issues resulting from the technology review, as described above, they will be brought to the attention of the Vice President of Academic Affairs for further review at the Executive Management level.

Equipment Purchasing

• The equipment budget is allocated to the president. Once the approval has taken place, a budget transfer is completed into the dean equipment accounts. The dean is authorized to electronically complete the requisition and forward it to the Business Office for processing of a Purchase Order consistent with Minnesota State purchasing guidelines. If the purchase includes computer or telecommunication equipment, it must be reviewed by the Vice President of the respective area and the Chief Information Officer, or his/her designee before the Business Office is authorized to process the purchase order and obligate the state.

Lead Time Required for Purchasing

• Sufficient time must be provided to process the purchasing order for all parties involved. The Purchasing Technician requires a minimum of five (5) business days to process a purchase requisition; at varying times of the year, more time may be needed. New vendors require additional processing time. It is now mandatory that new State vendors complete a W-9 and provide additional contact information.

Record-keeping

• The Business Office will maintain all records related to all College purchases, including the electronic requisitions described above. The Business Office, consistent with policy, will also retain all bid records and other back-up materials related to College purchasing transactions.
  
• The Business Office will promptly return, to the initiating party, any improperly completed or incomplete requisition, with copies to any approving authority.

Leasing Proposals

• Special rules apply to proposals for leasing equipment/lease purchase proposals, etc. Generally, these are expensive to administer, require significant State involvement, and there are additional State rules pertaining to them. The College will not pursue leasing arrangements without substantial documentation, including cost benefit analysis, and buy versus lease analysis conclusively supporting leasing as the preferred option.

Professional Technical Service Contracting

• Refer to Saint Paul College Policy 5.14.01 – Professional Technical Service Contracting. No contracting of any sort, excepting customized training, is authorized by any staff member outside the Business Office. Contract proposals are initiated by completion of the appropriate form, which is available on the intranet site. Request for proposals and request for bids for professional and technical contracts will be completed by the business office. Template copies for these contracts should be taken from the Minnesota State website each time the Requisitioner initiates a new contract. The contract may be signed by properly delegated administrators on behalf of the college. In addition, a 
  Data Disclosure form must accompany all Professional Technical Service Contracts. The contract should be forwarded to the Business Office with supporting quotes. Only business office staff may sign the encumbrance and form/execution verifications on the contracts. The Business Office will award all contracts in accordance with State law and Minnesota State policy. Staff proposing contracts involving the College should discuss their proposal in advance with appropriate Business Office staff; especially those requisitions in excess of $50,000.00 which requires a Request for Proposal (RPF) or adequate documentation to display “sole source” eligibility.

Technology Fee Equipment Purchases

• There are special rules which apply to purchases made using Student Technology Fees. Students have a role in approving purchases financed from this funding source. See separate policy concerning distribution of technology fee equipment allocations.

In general, all staff members are advised to talk to the College Buyer in the Business Office well in advance of any proposed purchase, especially in unusual purchases or large purchases, or any purchases not described above.​