New Mexico State University

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CHAPTER 4: CENTRAL PURCHASING OFFICE (CPO)

4.10.10

Construction Policy and Procedures

All construction projects shall be accomplished in conformance with the policies outlined in Chapter 13, Article 4 of the New State Statutes.

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4.10.15

Change Orders - Construction Project

The Office of Facilities and Services is responsible for initiating all construction project Change Orders. The Vice President for Human and Physical Resources' approval is required to authorize all construction project expenditures. The following procedures relative to construction project Change Orders will be followed:

  • Budgets for major construction projects ($300,000 or greater value) will be submitted to the Board of Regents. Change orders must be made within budgeted funds which include the contingency fund. The intent of the contingency fund is to meet unexpected costs due to unforeseen conditions found during construction.

  • Change orders may be used to make additions to the project or complete unfinished space, or departmentally required changes, only after careful review to ascertain the cost is reasonable and when, in the judgment of the Office of Facilities and Services, the addition is in the best interest of NMSU.

  • Change orders will be issued for corrections of errors in the plans and specifications only for that portion of the cost that would have been included in the bid price had the error not been made.

  • No Change Order will be issued when corrections needed are the result of the contractor's mis-interpretation of the contract documents. This is the contractor's responsibility.

  • No change order will be issued when corrections needed are the result of an architectural/engineering error. This is the architect's responsibility.

  • On each project, including branch campus projects, the Director of the Office of Facilities and Services, or designee, will confer with the appropriate administrators, or their designee, prior to the execution of Change Orders involving significant changes in the project.

  • In order to ensure a smooth execution of contractor construction effort, the NMSU construction manager will exercise day-to-day control over required routine field Change Orders. The use of a field Change Order will be determined by considering the urgency, cost, and effect on the overall project.

  • The accumulation of Field Change Orders into a Change Order will be submitted monthly. This will provide a monthly accounting, for payment to the contractor. Change orders shall be approved by the CPO when processed for payment.

  • All Field Change Orders and all Change Orders are the responsibility of the Vice President for Human and Physical Resources and require approval.

  • Change Orders which would cause the project to be over budget require the pre-approval of the Board of Regents or their designee.

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4.15

FEDERAL GOVERNMENT PURCHASES

All Federally funded requisitions shall identify the funding source and the type of agreement (prime contract or prime grant). Refer to the BPM, section 4.20.05 for justification required by the Federal Agency funding sources on professional services.

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4.15.05

Contracting Officer Approval

The originator of the requisition will determine if prior contracting officer approval to purchase is required by the contract. Department Head approval will indicate either that contracting officer approval has been obtained, or that the contracting officer approval is required.

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4.15.10

Equipment Screening

All proposed purchases of equipment having an acquisition cost of $1,000 or more are subject to the screening program to determine if like equipment might already be on campus and available for use. This requirement is contingent upon use of the Federal Acquisition Regulations for screening.

Screening for equipment with a unit value of $1,000 to $9,999 will be carried out by the department and will be restricted to screening of like equipment in the custody of that department. The Property Office will furnish an inventory list of all equipment for which the department is accountable.

Screening for equipment with a unit value greater than or equal to $10,000 ($25,000 on computer equipment) will be carried out by a joint effort of the department and the Property Office. This screening will encompass the total like equipment on campus. The Property Office maintains a list of all items with a cost of $10,000 or more.

The results of the screening effort will be recorded on the requisition by the department.

Certification Sample:

This is to certify that a determination has been made that there is no like equipment in this department or on campus that is available for use in lieu of item(s) requested.

Department:
Name Title Date
Property (if required):
Name Title Date

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4.15.15

Flowdown Clauses

Purchase Orders over $2,500 shall contain all flowdown clauses as required by the Federal Acquisition Regulations (FAR). These flow downs will be attached to Purchase Orders by Central Purchasing Office (CPO).

On all procurements over $25,000 involving the use of Federal funds, the CPO shall ensure that the following certifications are in place:

  • Certification Regarding Debarment, Suspension, Proposed Debarment, and other Responsibility Matters - (FAR 52.209-5 and A110, Appendix A.8).

  • Certification and Disclosure Regarding Payments to Influence Certain Federal Transactions (Anti-Lobbying) - (FAR 52.203-11 and A110, Appendix A.7).

  • Clean Air and Water Certification - (FAR 52.223-1).

  • Truth in Negotiations, Public Law 87-653.

Compliance with this paragraph is required on all applicable subcontracts.

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4.15.20

Noncompetitive Purchases

If the originator determines that a noncompetitive purchase must be made, a Sole Source Justification form must be completed and submitted to the CPO. These forms are available from the CPO. In lieu of this form, the buyer may use other documentation that includes the same information if available.

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4.15.25

Small and Disadvantaged Business Concerns

NMSU intends that businesses and small business concerns owned and controlled by socially and economically disadvantaged individuals shall have maximum practicable opportunity to participate in the performance of Federally funded contracts.

In accordance with 45 CFR Part 74.43, the CPO shall ensure that there is maximum competition among contractors and that positive steps are taken to assure that minority firms, womens' business enterprises, and labor surplus firms are utilized.

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4.15.30

Price or Cost Analysis

The CPO will perform price or cost analysis on single or sole source procurement as required by the contract, but always on procurements of $2,500 or more.

The Price Analysis-Federally Funded Procurement Form shall be used on all Sole Source Procurements that involve Federal funds and a copy of that form maintained with the file copy of the Purchase Order.

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4.20

PROFESSIONAL SERVICE CONTRACTS (PSC)

Services performed by an individual, a medical provider, or a licensed professional such as an attorney, accountant, architect or engineer requires a Professional Service Contract (PSC). If the person is performing in the capacity of a temporary employee, the transaction should be routed through the Payroll Office. Professional services less than $2,500 do not require a PSC form; however, those $2,500 and greater require a PSC form with the contractor's signature. This form should reference the purchase requisition number and be forwarded to the CPO. All payments for services must be supported by a contractor invoice. If the invoice is generated by the department, the contractor must sign the invoice. If the invoice is generated on the contractor's letterhead, no signature is required.

Departments may procure professional services from an individual when the total expense is less than $2,500, provided the vendor meets the criteria for an independent contractor, and there is no conflict of interest with employment.

Professional Service Contracts greater than $2,500 may be signed on behalf of the Board of Regents by the appropriate administrative office as follows:

Contract Value/Signature Approval

  • Less than $10,000 - Director of Purchasing or designee
  • $10,000 or greater - Vice President for Business and Finance or designee
  • Professional services great than a $50,000 cumulative value must be competitively bid through an RFP

A Professional Service Contract or a Purchase Requisition is not required when a person is merely being reimbursed for travel and lodging expenses; these are to be submitted for reimbursement on a Direct Pay Request.

 

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4.20.05

Professional Services Justification

The originator will determine if such a justification is required by the Federal Agency funding sources. If applicable, an attachment to the standard professional services agreement form must be completed and submitted with this form. Both the professional services agreement and the attachment are available with the CPO.

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4.25

PROPERTY MANAGEMENT

The Property Office has certain assigned responsibilities for the management and control of inventoried equipment. NMSU property belongs to the University as a whole and not to any one department or program. To help NMSU economize and make maximum use of its resources, departments are asked to support the property recycling program by being aware of and using available surplus property.

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4.25.05

Lease/Buy Analysis of Equipment

The originator must provide the following information on all Purchase Requisitions (PR) for the lease or lease/purchase of any type of equipment:

  1. Cost of the item, if it were to be purchased instead of leased or rented
  2. Interest rate, number of payments, amount of down payment, and any other significant terms of the Lease Agreement
  3. Date of the first payment to be made, if known
  4. Total amount to be paid over the term of the lease, including both principal and interest
  5. Maintenance costs included in the monthly payment
  6. Buy-out option

If the total lease amount (point 4 above) exceeds the cost amount calculated (under point 1), a justification for leasing versus direct purchase must be submitted to the CPO.

4.25.10

NMSU Surplus Property

NMSU Surplus Property, located in the Office of Facility and Services (OFS) Warehouse is responsible for the disposing of all NMSU property, except property to be used by the CPO as a trade-in or exchange. No other person or department is authorized to sell or exchange any item at any time.

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4.30

REQUISITION PREPARATION AND PURCHASE ORDERS

4.30.05

Direct Pay Request Purchases

Regardless of the dollar amount some purchases do not require either a Purchase Order (PO) or Purchase Requisition (PR) but do require a Direct Pay Request for payment to be made.

  • Utilities (i.e. electricity, gas, water, telephone usage, excluding sanitation)
  • Credit Card Gasoline Charges/Gasoline Credit Card Purchases (refer to subsection 3.03.02)
  • Stipends/Scholarships
  • Non-employee Travel Reimbursement (Section 3.04.02)
  • Refunds of NMSU Tuition and Fees Related to Student Accounts
  • Bookstore Inventory for Main Campus
  • Art Department Modeling
  • Freight Costs not associated with a PO (i.e.: UPS, FedEx)
  • Mexican Vehicle Insurance
  • Entertainment Contracts
 

4.30.10

Purchase Requisition (PR)

Purchase Requisitions (PR) are the on-line requisitions entered into the Financial Purchasing Records (FP) System by a department. Regardless of the dollar amount a Departmental Requisition is required for the following:

  • Purchases totaling $2,500 and above
  • Purchases involving trade-in of NMSU property
  • Construction/Remodeling
  • Maintenance, Rental and Lease Agreements and Contractual Services with multiple payments
  • Purchases initiated without obtaining an authorized Purchase Order (PO) prior to placing an order
  • Purchases to be charged to other than current fiscal year
  • Honorariums
  • Approved pre-payments

NOTE: The Central Purchasing Office will obtain quotes and sealed bids on all PRs as required.

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4.30.15

Furniture and Equipment Purchases of $1,000 or More

All purchases over $1,000 are tagged by the Central Purchasing Office and placed on the department property inventory list.

NOTE: Permanent equipment is defined as property valued at $1,000 or more, with a one year or more life expectancy.

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4.30.20

Petty Cash Purchases for Less than $50

NMSU purchases not exceeding $50 per receipt may be made in the name of NMSU when necessary, provided receipts for payment are obtained at the time the purchases are made. Such payments shall not include taxes (except payments for services). Refunds to employees who have paid cash for the item will be made by means of a Petty Cash Voucher. Employees will not be reimbursed for taxes unless services were involved.

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4.35

RESPONSIBILITIES OF UNIVERSITY DEPARTMENTS

4.35.05

Amending Purchase Orders

When amending Purchase Orders, there are two forms that may be used. The Change Order Request form is to be used when changing quantity, price, description of line items, adding line items, deleting line items or changing the vendor. If this change results in a dollar increase greater than $250, then the form must be forwarded to the appropriate fiscal monitor for review if the fund is a restricted or plant fund. Otherwise, the form may be forwarded directly to the CPO.

If the request is to change the funding Index (FOPAL) or Account, then the Purchase Order Funding Change Request form must be used. This form must be forwarded to your fiscal monitor if the change results in a dollar increase greater than $250 and the fund is a restricted or plant fund. Otherwise, the form may be forwarded directly to the CPO. All Change Orders will be processed into Banner by the CPO.

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4.35.10

Correspondence Regarding Purchase Orders

All correspondence and communication concerning Purchase Orders over $2,500 shall be conducted by the CPO, unless the CPO grants the department express permission to communicate with the vendor.

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4.35.15

Inspection of Items Received by Department

All Purchase Orders involving capital equipment items with a destination of the NMSU main campus will be sent to the Central Receiving Department for initial delivery. Exceptions to this policy will only be the approval of the Central Purchasing and Risk Management Office. If an exception is requested, the request for exception shall be noted on the requisition or correspondence separately sent to the Central Purchasing and Risk Management Office referencing the requisition.

The Central Receiving Department will be responsible for initial inspection, coordination of and delivery to the appropriate departments and inventory tagging of capital equipment. If equipment processed through the Central Receiving Department does not conform to the quantity or quality specified, the Central Receiving Department, in coordination with the appropriate buyer in the Central Purchasing and Risk Management Office, will be responsible for administering the return or other corrective actions with the vendor.

On all other Purchase Orders equal to or greater than $1,000, the department requesting the order will be responsible for inspecting and accepting or rejecting deliveries. The user will determine whether the quantity and quality are as specified in the Purchase Order. If inspection reveals that the delivery does not conform to the quantity or quality specified, the end user, or Central Receiving Department if requested, will notify the vendor that the delivery has been rejected and will work with the vendor to obtain a satisfactory replacement or a supplementary delivery.

If the Central Receiving Department, or the using department finds that items received are not acceptable, notification to the vendor shall occur as quickly as possible, but no later than fifteen calendar (15) days following delivery. On all returns, a Letter of Authorization from the vendor to return merchandise must be obtained before merchandise is returned. Certain vendors may levy a restocking fee.

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