Procurement Policy

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The policy set forth in this document establishes standards and guidelines for the procurement of supplies, equipment, construction and services to ensure that they are obtained as economically as possible through an open and competitive process and that contracts are managed with good administrative practices and sound business judgment.

Code of Conduct

A Code of Conduct shall govern the performance, behavior and actions of the Institution, including Board members, officers, employees, directors or agents who are engaged in any aspect of procurement, including, but not limited to, purchasing goods and services; awarding contracts and grants; or the administration and supervision of contracts.

  • No employee, officer, director or agent of the Institution shall participate in the selection, award or administration of a bid or contract if a conflict of interest is real or apparent to a reasonable person.
  • Conflicts of interest may arise when any employee, officer, director or agent of the Institution has a financial, family or any other beneficial interest in the vendor firm selected or considered for an award.
  • No employee, officer, director or agent of the Institution shall do business with, award contracts to or show favoritism toward a member of his/her immediate family, spouse's family or to any company, vendor or concern who either employs or has any relationship to a family member; or award a contract or bid which violates the spirit or intent of Federal, State and local procurement laws and policies established to maximize free and open competition among qualified vendors.
  • The Institution's employees, officers, directors or agents shall neither solicit nor accept gratuities, gifts, consulting fees, trips, favors or anything having a monetary value in excess of twenty five dollars ($25.00) from a vendor, potential vendor or from the family or employees of a vendor, potential vendor or bidder; or from any party to a sub-agreement or ancillary contract.
  • As permitted by law, rule, policy or regulation, the Institution shall pursue appropriate legal, administrative or disciplinary action against an employee, officer, director, vendor or vendor’s agent who is alleged to have committed, has been convicted or has pled no contest to a procurement related infraction. If said person has been convicted, disciplined or pled no contest to a procurement violation, said person shall be removed from any further responsibility or involvement with grants management, procurement actions or bids, consistent with State or Federal policy.

Solicitation and Competition

All procurement transactions will be conducted to provide, to the maximum extent possible, free and open competition among suppliers. The Institution must begin with an analysis of the need for the procurement to avoid the purchase of unnecessary items. The purchaser must then identify and clearly specify standards for the goods or services desired and seek competitive offers where possible to obtain the best possible quality at the best possible price.

In general:

  • Some form of cost or price analysis shall be made and documented in the procurement files in connection with every procurement action. Price analysis may be accomplished in various ways, including the comparison of price quotations submitted and market prices, together with discounts.
  • No bid or quote is required for purchases $10,000 or less if price is considered to be reasonable.
  • Price or rate quotes must be obtained from at least two sources for purchases of more than $10,000 but less than $100,000.
  • Bids must be sought for goods and services of $100,000 or more.
  • For procurements that exceed $100,000, competitive bids will be utilized and requests for these bids will be written in a way that does not restrict competition (a clear and accurate description of the technical requirements for the material, product or service to be procured; all requirements which offers must fulfill; and all other factors to be used in evaluating bids or proposals). Procurement files must include the basis for contractor selection, justification for lack of competition when competitive bids or offers were not obtained and basis of award cost or price.
  • Whenever possible, the Institution must engage in affirmative efforts to utilize small businesses, minority-owned firms and women's business enterprises.


Price should be one of the factors in the evaluation of responses, but the Institution is not required to take the lowest price if other factors are important to the decision.

  • There should be an objective method for selection and any factors for evaluation and selection should be listed in the procurement documents.
  • Awards shall be made to the bidder or offer or whose bid is responsive to the solicitation and is most advantageous to the Institution (price, quality and other factors considered).
  • A bid may be rejected when it is in the Institution’s interest to do so.


At a minimum, procurement records must clearly show how the Institution:

  • Executed price sampling for small purchases;
  • Selected the method of procurement and the type of contract to be used;
  • Determined which bids or proposals to accept and which to reject; and
  • Determined the basis for the contract cost or price.

Contract Administration

The Institution has an overall system of contract administration to ensure proper oversight and management of procurement actions. The Institution is responsible for evaluating contractor performance and documenting, as appropriate, whether contractors have met the terms, conditions and specifications of the contract. This may include progress inspections, interim products, inspection of goods delivered and other such methods that provide assurance that the goods or services purchased are being delivered within the scope of the contract.

The Institution's contract administration system must ensure that:

  • The method of payment is documented and records maintained for five years after final payment is made;
  • All activities are carried out and costs incurred in compliance with applicable requirements; and
  • Before payment is made, services performed are adequate and consistent with the contract scope of services.