INTRODUCTION

In order to ensure compliance with Public Purchases Act of New Mexico, the Regents' policies, and all Federal and State laws, all purchases of supplies, materials, equipment, and services for NMSU will be made through the CPO, unless otherwise stated in these procedures. All monies received by a department of NMSU, regardless of their source, are considered to be NMSU funds and are to be expended under the procedures set forth herein.

CPO has delegated authority to department for purchases less than $2,500 for items listed in subsection 4.30.10 however, final approval by CPO is required.

Detailed procedural training guides for the Purchasing System (FP) are available from the CPO for all employees involved in the purchasing, receiving, and payment authorization process.

The CPO has the sole authority for ordering supplies, materials, equipment, services, and construction. No individual may make a purchase directly without approval of the CPO except as outlined below in specific sections. According to State and NMSU policy, purchases made without proper approval may become the personal obligation of the person originating such a purchase.

In addition to the requirements of State and Federal laws, the Board of Regents of NMSU has adopted regulations and policies to be followed for institutional purchases. NMSU funds may not be used for personal items and other items as designated by the Board of Regents and the President.

Every attempt will be made to act fairly in obtaining bids, proposals, and information for preparation of bid and proposal requirements and specifications. NMSU will attempt not to favor one firm, individual, or company over another in obtaining information for preparation of specifications. Bids will be awarded to the lowest responsible bidder, giving due consideration to price, quality of product, and time of delivery. ( See the BPM, Chapter 4, Section 4.05).

All purchases, except as stated in the BPM, Chapter 4, subsection 4.00.40, require previous entry and approval in the FP System.

Purchases may not be split to avoid competitive requirements. Orders placed in such a manner may be determined to be the responsibility of the requester.

[ back to top]

4.00.05

Contracting Authority

Only the Board of Regents, the President of NMSU, and CPO authorized buyers or their delegated representatives may sign a contract that legally binds NMSU.

[ back to top]

4.00.10

Conflict of Interest

Pursuant to NMSA 13-1-190, except as permitted by the University Research Park Act, it is unlawful for any State Agency or local public body employee to participate directly or indirectly in a procurement when the employee knows that the employee or any member of the employees immediate family has a financial interest in the business seeking or obtaining a contract. NMSA 13-1-62 defines "immediate family" as a spouse, children, parents, brothers and sisters."

4.00.15

Gifts and Gratuities

4.00.20

Insurance Administration

The General Liability, Vehicle Liability, Medical Malpractice, and Physical Damage insurances are presently carried by Risk Management; claims and other activity are to be processed through Risk Management via the CPO. The CPO is responsible for processing insurance policies, claims, and insurance clarifications for Overseas General, Overseas Fleet Liability, and Overseas Workers Compensation.

Insurance Coverage includes general liability, employee liability, volunteers liability, medical liability, law enforcement liability, employee bonding, officers and board members liability, workers compensation, building physical coverage, builders risk, property damage/loss, fine arts loss, vehicle liability, vehicle physical damage, aircraft liability, aircraft physical damage, overseas general liability, overseas vehicle liability, overseas vehicle physical damage, overseas workers compensation and Texas workers compensation.

Personnel assignments to foreign locations have to be reported to the CPO. This information will be relayed to the appropriate agent/carrier for insurance coverage. Contact the CPO for additional information.

[ back to top]

4.00.25

Subcontractor Kickbacks

The Anti-Kickback Act of 1986 (41.U.S.C.51-58) was passed to deter subcontractors from making payments and contractors from accepting payments for the purpose of improperly obtaining or rewarding favorable treatment in connection with a prime contract or subcontract.

The Act :

1. Prohibits any person from —
   1. Providing, attempting to provide, or offering to provide any kickback;
   2. Soliciting, accepting, or attempting to accept any kickback;
      or
   3. Including, directly or indirectly, the amount of any kickback in the contract price charge by a subcontractor to a prime contractor or a higher tier subcontractor or in the contract priced charged by a prime contractor to the United States
2. Imposes criminal penalties on any person who knowingly and willfully engages in the prohibited conduct addressed in paragraph (a) of this subsection.
3. Provides for the recovery of civil penalties by the United States from any person who knowingly engages in such prohibited conduct and from any person whose employee, subcontractor, or subcontractor employee provides, accepts, or charges a kickback.

Individuals who become aware of violations of this provision shall immediately report the incident to the Vice President for Business and Finance who in turn shall notify Audit Services.

[ back to top]

4.00.30

Payment for Purchases

Unless specifically excluded within this policy [Refer to the BPM, Chapter 4, subsection 4.30.05], no warrant, check, or other negotiable instrument shall be issued in payment for any purchase of services, construction, or item of tangible personal property unless the CPO or the Purchasing Department certifies that the services, construction, or items of tangible personal property have been received and meet specifications.

NMSU's payment terms for purchase order transactions are Net 30 days from date of invoice. Exceptions to this policy are:

• Terms that offer discounts for prompt payment, such as 2% 10 days Net 30 days,
  or
• Terms that have been agreed to by the vendor and NMSU's CPO.
  

[ back to top]

4.00.35

Purchase Cycle

The usual Purchasing Cycle involves:
1. Determination of requirements by the department requesting a purchase
2. Communicating these requirements to the CPO
3. Conducting solicitations for purchases
4. Selecting sources
5. Issuing purchase orders or contracts
6. Receiving materials or services
7. Processing payment through Accounts Payable

[ back to top]

4.00.40

4.00.45

• Purchases of any product or service from a vendor that would violate an exclusive or semi-exclusive supply and price relationship established by Central Purchasing & Risk Management. For more information, go to http://www.nmsu.edu/%7epurchase/pricing_agreements/index.html
• Annual fees on credit cards
• Donations
• Holiday decorations
• Alcoholic beverages (Except for resale)
• Tickets for athletic or entertainment events
• Personal care products
• Occasion cards, flowers, and gifts (condolence, birthdays, going away parties) for personal or business occasion/events.
• Compensation for personal service
• Fines, Penalties

• Expenses associated with lobbying efforts, unless specifically approved for cardholder
• Travel-related expenses, ie. Hotel, car rental, gas, meals, airfare, train fare, bus fare, internet connections, this includes spousal travel as well (travel expense must be audited before being reimbursed under university policy and state law)
• Registration fees to an NMSU entity (example: Las Cruces Campus to Alamogordo Campus)
• Business Meals, with the exception of approved, internal campus vendors. As of May 2006, the vendors are Corbett Center Student Union (Crossroads, Taos Restaurant, Catering Department, Java City), Frenger Food Court, Aggie Snack Bar, Golf Course Restaurant, Fulton Center Restaurant, and the Canteen. As vendors on campus change, this rule will continue to apply.
• Cash Advances
• Food products that are served as a meal (this is considered a business meal)
• Employee Awards directly related to employment, ie Plaques, gift certificates, etc.
• Internal purchases to NMSU other than the approved food vendors
• Multi-Year Service Agreements or Formal Contracts
• Professional Services for which there must be a contract signed or services from an attorney
• Reimbursement for loss or damage to personal items
• Taxes on goods; a tax exempt certificate to use with all vendors may be found at http://www.nmsu.edu/~purchase/taxexemptnotice.htm
• Agency fund purchases
• Employee uniforms. See the BPM, Chapter 5 subsection 5A.20 for procedures on uniforms.
• Equipment equal to or greater than $1000
• Gasoline
• Gift cards
• Freight on capitializable purchases such as equipment
  [ back to top]

4.05

1. When the user requires materials or services that are produced by only one manufacturer and the estimated cost of the purchase exceeds $2,500, the CPO shall specify the manufacturer's make or brand in the Invitation to Bid and shall obtain competitive bids from authorized dealers or distributors of the manufacturer as outlined in this section. If the manufacturer is the sole source of supply, regardless of the estimated cost of the purchase, the CPO is authorized to negotiate an open-market order or contract with the manufacturer or an authorized representative at prices and on terms most advantageous to NMSU; however, where competition exists, the CPO may obtain bids on this classification of items whenever they feel that such practices are in the best interest of NMSU.
   
2. A single purchase involving the expenditure of $2,500 may be made without bids but at the best obtainable price. Records of such purchases shall be maintained by the department for auditor's inspection.
   
3. A single purchase involving the expenditure of greater than or equal to $2,500 but less than $10,000 may be made by a buyer in the Central Purchasing Office by obtaining one written quotation.
   
4. A single purchase involving the expenditure of equal or greater than $10,000 but less than $20,000 shall be made after attempting to secure at least three bonafide written responsible bids. If less than three responsible bids are obtained, a purchase shall be made at the best documented obtainable price.
   
5. A single purchase in an amount equal to or greater than $20,000 shall be made only after notice that sealed bids and/or proposals will be received. The invitation for sealed bids or request for proposals shall be published at least once in a newspaper of general circulation in the area where the CPO is located. Notices shall appear in the newspaper no later than 10 calendar days before the date of opening bids or the due date for responses to request for proposals. These requirements of notice are in addition to any other procedure that may be adopted by the CPO to notify prospective bidders that bids will be received. Professional Services in excess of $50,000 require a Request for Proposal (RFP) to be processed in advance.
   
6. An Invitation to Bid or Request for Proposals will be sent to qualified vendors selected by the CPO. Departments may suggest additional sources. The department will be notified of the date, time, and location of bid opening. Normally, bids are opened at 4 p.m. on the day stated in the bid invitation. The department's presence at bid openings is welcomed and encouraged.
   
7. After the bid opening, the CPO will indicate who the apparent responsive bidder is and forward a copy of the bid results to the department for review. If the lowest bid is rejected, the department must state in writing why the bid did not meet specifications and recommend whether to accept the next lowest bid or to reject all bids and re-bids. If no bids were received, or the bids received were rejected, the CPO will re-advertise and solicit bids an additional time. If after the re-bid no bids were received or the re-advertised bids are also unacceptable, the CPO may negotiate the required procurement on the open market. Official bid responses must NOT be altered in any way, and all original documentation must be returned to the CPO.

4.05.05

4.05.10

4.05.15

4.05.18

4.05.20

4.10

4.10.05