Standard Purchasing

Date Approved:3-6-2001
Last Revision:2-27-2020
Last Reviewed:2-27-2020
Approved By:President
Oversight Unit:PURCHASING
This policy has a related procedure. Click to view the procedure below.
This policy has a related guideline. Click to view the guideline below.
Purpose

To provide information regarding the uniform purchasing policy at Northern Michigan University.

Applicability

All faculty and staff.

Policy

The policy of the Purchasing Department is to conduct its purchasing on an ethical, sound and businesslike basis, and to secure goods and services to attain the maximum value for each dollar expended in promoting the educational needs and objectives of this institution.

This information was prepared to acquaint University employees in the purchasing procedures and policies governing the procurement and delivery of all materials, supplies, services, and equipment required in the operation of Northern Michigan University.  It is a guide to the normal operation of this Department, and should provide all the information needed regarding Northern Michigan University purchasing methods.  Additional information can be obtained by calling the Purchasing Department at 2360. 


Standard Purchasing

Procedure

1.     Departments requiring purchases for goods exceeding $2500 shall:

a. Develop an estimate of cost.  If $2,500 or less, contact the vendor to determine ability to pay with the Departmental procurement card.  If vendor accepts card as form of payment, follow applicable guidelines for procurement card purchasing on Purchasing Department Web page.

b. If purchase is greater than $2.500, submit a purchase requisition, completely fill out with description of product/s, vendor, if known, appropriate account number and date product is needed. 

c. If in excess of $10,000, and multiple sources are identifiable, bids will be solicited: 

Written bids will be required on all purchases estimated to exceed $10,000 in value, with the exception of construction projects which require written bids over $20,000. Sealed bids will be requested on purchases exceeding $20,000.

When purchases are bid, three or more qualified sources will be requested to bid. When it is in NMU's best interest, the Manager of Purchasing may authorize an exception to this policy. When an exception is made to the bidding process, the reason for the exception will be documented. Examples of such exceptions would be: three sources not available, sole source, compatibility with existing equipment, specialized service, an emergency situation or factory direct purchase.

Purchases that are covered by an existing contract, such as State of Michigan, Educational & Institutional Co-op, Hospital Purchasing Service, Michigan Association of College & University Purchasing Agents or Northern Michigan University, do not have to be bid.

Upon receipt of bids, the information will be reviewed with the department and order placed.

2.     Vehicle Purchases: All vehicles shall be purchased through the competitive bid process.  Exceptions to this procedure shall be determined by the Director of Business Services.  Examples of exceptions are:  used vehicles, no other source, factory direct, or other similar circumstances.  A completed purchase requisition shall be submitted to the Purchasing Department, including a description of the vehicle, options desired and any special requirements.  If a vehicle is to be traded in a complete description is required, i.e., year, mileage and general condition statement, accompanied by an NMU Equipment Disposal Form.  Purchasing will submit these specifications to vendors and receive competitive bids to supply the vehicle.  Normal bid time is two weeks after release.  Once bids are received, the results are shared with the department, and with concurrence of the Risk Manager, the order is placed.  Upon delivery to the University, the Risk and Insurance Manager will apply for a Michigan Title, provide or transfer a license plate and new proof of insurance.