POL 2.000 Purchasing Policy

Purpose 

It is the policy of the Board of Trustees to establish purchasing procedures which shall: 
conform to all applicable legal requirements set forth by Michigan statutes and federal  procurement laws; 
result in the most effective dollar return to the college district for goods and services;  maintain professional relationships with vendors; 
extend equal privileges to vendors without regard to the geographic location of their  business organizations when practical; 
take into consideration the particular needs of the college district 

 Purchasing Authority 

The President or designee shall have the authority to control all purchasing practices and  shall have authority to approve the purchase of all consultant/service agreements,  materials, supplies, equipment, and other commodities on behalf of the college. Parameters  for authorization are as follows: 

• Purchases less than $500 that are within the limitations of the budget shall be approved by the appropriate budget officer as identified by the Vice President Business  Services 

• Purchases greater than $500 but less than $10,000, the Vice President Business  Services shall have authority to approve. 

• Purchases greater than $10,000 to $100,000 are to be approved by both the Vice  President Business Services and the President. 

• Purchases over $50,000 shall require competitive bids, unless otherwise exempt from  the bidding process. 

• The Board shall approve purchases over $100,000, unless exempt from  Board approval.  

Pyramiding of purchases or splitting transactions which would result in avoiding the  requirements for competitive bidding is prohibited. 

Exemptions 

The following items are exempt from competitive bidding and board approval: 

1. Purchases through state contracts or other purchasing cooperatives; 
2. Food and other items for resale; 
3. Non-competitive items available from one source; 
4. Emergency purchases (see explanation below); 
5. Grant or State/Federal Appropriation funded purchases.

Emergency purchases are also exempt from competitive bidding if: 

1. The emergency nature is one in which college operations are in jeopardy;
2. The college uses sound business practice in the emergency purchase;
3. There are adequate funds in reserve to cover the expenditure; 
4. The board chair is informed of the purchase; 
5. The full board will be notified of the purchase 

New Construction, Repairs, Renovations and Alterations 

All new construction, repairs, renovations, and alterations estimated to cost more  than $100,000 shall be classified as “major” projects and subject to board approval. Projects estimated to cost less than $100,000 shall be classified as minor projects. 

When a project is estimated to cost over $100,000 and blueprints, drawings,  specifications and building certification are required, an architect, civil engineer, or  construction manager will be selected and approved by the President. 

Contract Management 

The President or designee shall approve all contracts. All contracts of  consultant/service or purchase of goods agreements greater than $50,000 in total  value must be reviewed by an attorney. 

Vendor Selection 

Vendors will be selected based on price, quality, delivery time, and past  performance. The use of local and minority-owned businesses is encouraged  whenever possible.  

Project Management 

It shall be the responsibility of the Vice President Business Services to coordinate and exercise overall supervision in the planning, obtaining quotes, contract letting, and  construction of all projects. 

Receiving and Inspection 

All deliveries must be inspected upon receipt to ensure they meet the purchase  order specifications. Any discrepancies must be reported to the department head  where the purchase was made. Any unresolved orders are to be reported to the  Vice President Business Services.  

Payment Processing 

Invoices are to be approved by the department head where the purchase was made  before payment is made by Business Office staff. Payments will be made in  accordance with the terms specified in the invoice or contract.

Records Retention 

All purchasing records, including purchase orders, contracts, bids, and invoices,  must be retained in accordance with the college’s retention policy. 

Policy Review 

The Board of Trustees will review this policy biennially and update as necessary to  ensure compliance with applicable laws and regulations.

Revised June 6, 1996
Revised August 12, 1999
Revised November 16, 2010
Revised August 1, 2024