Purchasing Policies
The Superintendent/President is delegated the authority to purchase supplies, materials, apparatus, equipment and services as necessary to the efficient operation of the District. The Superintendent/President delegates this authority to the Vice President of Business Services.
It shall be the policy of the Board that the purchase of supplies, materials, equipment and services for the district be done in a manner which provides the best merchandise available at the most economical purchase price consistent with standard purchasing practices.
The Board shall approve all contracts or purchase orders for transactions in the following or higher dollar amounts, including applicable sales taxes, freight, and other initial purchase costs prior to award:
(A) Equipment, materials, supplies and services at or near bid limit as adjusted annually pursuant to Public Contract Code #20651 (the current threshold amount is posted at http://www.msjc.edu/purchasing.);
(B) All formal Bids and Requests for Proposals;
(C) All Public Works Contracts (i.e., construction, alterations, repairs or improvements) over the contract dollar limit set by Public Contract Code #22030-22045.
Section One: General Information
Dollar Limits and Requirements:
Procurement transactions and the rules that govern how they are managed are based upon aggregate dollar amount and type of purchase.
Purchases of $3,000 and less
(A) The procurement of goods and services of $3,000 or less are not subject to the competitive process.
(B) The Purchasing Agent will at their discretion award these orders based on what is most advantageous to the District.
Purchases greater than $3,000 to under $25,000
(A) The procurement of goods and services in amounts greater than $3,000 and under $25,000 shall be made with as much competition as is practical and deemed necessary by the Purchasing Agent. This may include verbal or written quotations from two or more vendors. These quotations may be obtained by either the responsible buyer or the requisitioning department and are subject to review and approval by the Purchasing Department.
B) Supporting documentation and price quotations are maintained as part of the purchasing file.
Purchases from $25,000 to Bid Limit
(A) The procurement of goods and services in amounts greater than $25,000 to under bid limit shall be made with as much competition as is practical and deemed necessary by the Purchasing Agent. A minimum of three written quotations will normally be obtained unless authorized by the Purchasing Agent. Supporting documentation and price quotations are maintained as part of the purchasing file.
Purchases exceeding Annual bid limit.
The Invitation for Bid (IFB):
The procurement of goods and services to established formal bid limit or greater amounts utilize the Invitation for Bid Process; the State Chancellor sets the bid threshold requirements. This amount is normally adjusted on an annual basis and will automatically be the bid threshold amount for the District. The current threshold amount is posted at http://www.msjc.edu/purchasing.
Purchases exceeding the established bid limit requires prior Board approval.
A cost or price analysis in connection with every procurement action in excess of the Simplified Acquisition Threshold is required for procurements or contract modifications made with Federal funding.
The Request for Proposal Process (RFP):
Procurement of goods and services exceeding current bid threshold in which it is determined not to be advantageous or practical to use the formal secure bidding process, may be purchased through the use of formal secure competitive proposals. This is the Request for Proposal (RFP) process.
The Request for Qualifications (RFQ):
For the process of selecting professional services, architects, engineers, etc, the Request for Qualification process may be utilized.
Award:
In all competitive procurement, the award is made by the Purchasing Department to the vendor with the lowest price for the good or service that conforms to specifications and other requirements that is the lowest responsive responsible bidder. This may result in an award to a vendor other than the lowest bid.
Splitting Purchases (Bid Splitting):
It is illegal to artificially divide or fragment an order to meet the lesser requirements of lower dollar procurement transactions.
Confidentiality of Information:
Confidential information provided by vendors shall not be shared with competitors by any individual involved in the process. This includes requisitioners, reviewers and purchasing staff. Confidential information will be held confidential to the extent allowed by the law.
Purchasing Documents and Special Approvals:
(A) The Purchase Order (PO) is issued by the Purchasing Office and has the signature of an authorized employee of the Purchasing Department. A purchase requisition is entered into the District’s Purchasing System called Galaxy. The purchase requisition is the internal document used by the requisitioner to initialize a purchasing transaction. All of the necessary and required information is to be provided on the purchase requisition in Galaxy by the requisitioner. All purchase requisitions must be fully approved in Galaxy by the appropriate personnel assigned to approve the purchase requisition. Once a purchase requisition has been fully approved in Galaxy, the Purchasing Department will generate a PO. Internal controls are maintained by the appropriate Business Services staff assigned to approve budget and funding for all purchase requisitions entered in Galaxy.
(B) Special approval is needed for the procurement of computer hardware, peripherals and software. All purchase requisitions must obtain the approval of Information Technology or Instructional Technology Support, as applicable.
(C) Special approval is needed for the procurement of furniture, equipment, flooring, paint, or any facilities improvement. All purchase requisitions must obtain the approval of Facilities as applicable.
Equipment:
Any purchase of equipment must be processed by entering a purchase requisition using the Galaxy purchasing system. All equipment over the amount of $5,000 including tax, shipping and installation shall be equipment tagged for inventory purposes. All tagged equipment will be placed on the Business Services Asset Management List and the departmental equipment inventory list. The final destination that the equipment will be located (campus/building/room number) must be noted in the original purchase requisition entered into Galaxy by the requestor.
Blanket Purchase Orders:
(A) Blanket Purchase Orders are documents issued to a vendor for purchase of certain classes or categories of items.
(B) The Blanket Purchase Order may spell out terms, conditions, delivery information and other contract information, including pricing or discounts from published lists for a specific period of time. A "Not to Exceed" amount is listed on the Blanket Purchase Order document as a method of monitoring and control. Additional controls relative to maximum one-time purchases or single item costs may also be included. Blanket purchase orders must have the names of the individuals authorized to place orders.
(C) Blanket Purchase Orders are used to purchase items on a repetitive basis to serve the needs of the District requisitioner. They may be used for commodity type purchases, such as maintenance supplies, food (this does not include catering), or utilities. Blanket Purchase orders are not valid for equipment, FURNITURE, TECHNOLOGY HARDWARE OR SOFTWARE, STAFF/STUDENT CLOTHING, PROMOTIONAL, CUSTOM OR LOGO ITEMS, INDIVIDUAL ITEMS OVER $500.00, OR ANY PROJECT REQUIRING VENDOR LABOR.
(D) The amount of competition needed on a Blanket Order varies according to commodity, service and/or delivery as well as location of the supplier to the requisitioner. A decision as to the level of competition needed shall be made by the buyer in consultation with the Purchasing Agent, OMB 2 CFR 200.320, and per AP 6340.
(E) Blanket Purchase Orders cannot be used to procure equipment.
(F) Small tools should be coded as tools (object code 4511) and entered in a small tools inventory by the department. Each department is responsible for tool inventory. Tools can be purchased per project, if needed, or as tools become obsolete, with written justification from the Director of the department.
Evaluation and Loan of Equipment:
(A) All equipment brought in for loan or evaluation purposes shall have prior authorization by the requestor, division dean or vice president, Purchasing Office and in the case of computer equipment, Information Technology. Large or special purpose equipment requiring special hookup or electrical requirements will also require Maintenance and Operations Department coordination before being requested.
(B) This prior approval shall be noted by the approval of the appropriate staff on the purchase requisition entered into the Galaxy Purchasing System. The words “FOR EVALUATION PURPOSES ONLY” must be clearly indicated in the body and notes tab of the purchase requisition.
(C) In addition, the Purchase Requisition shall also state, "All costs associated with the delivery, installation, evaluation and return of the equipment shall be borne by the vendor. All risk for damage and/or loss of the equipment shall also remain with the vendor."
(D) This purchase requisition must be fully approved in Galaxy and shall be used to issue a Purchase Order that states the same terms and language as the purchase requisition. This Purchase Order will be provided to the vendor prior to delivery of the equipment.
(E) Loan or evaluation of equipment should in no manner constitute a preference for that equipment or imply that it will result in an order for the purchase. The Purchasing Department has the responsibility to subject the purchase of all equipment to a competitive process as well as to negotiate all terms and conditions, price, warranty and service with the vendor.
Public Review of Bids and RFPs:
Formal Secure Bids and Requests for Proposal are considered public information and as such, are open for review pursuant to the following guidelines:
Process:
(A) Formal secure bids will be made public which will include the name of the bidder, amount of the bid and other related information deemed relevant by the buyer. This record (bid analysis) may be made open to public inspection. The actual bid documents and related materials shall not be open to public review until after contract has been awarded.
(B) Formal secure proposals will be made public which include the names of the proposers. All other information including pricing, shall not be open to the public for review until after the contract has been awarded.
Proprietary Information:
Certain information relative to the procurement process can be deemed proprietary in nature and not open for public review. This proprietary information must be clearly marked as such by the bidder/proposer and if possible, submitted via the current District process. This information will be considered proprietary and not open to public review, unless deemed otherwise by the Purchasing Agent. The final decision as to whether this information is proprietary lies with the Purchasing Agent. Pricing and the bid packet are not considered proprietary information.
Review of Bids or Proposals:
Requests for information or review of the documents shall be made to the Purchasing Agent or their designee. An appointment to review the file shall be made with the Purchasing Agent or buyer at a mutually convenient and reasonable time. The reviewer shall not take possession of any of the documents in the file. All proprietary information shall be removed from the file prior to the review. All reviewers must sign a reviewers log sheet that becomes a part of the original bid file.
Purchases Made with Grant Funding:
(A) Procurements made with grant funding will follow all applicable guidelines as outlined in the granting agency's letter of award. For federal grants this may include, but is not limited to, following the guidelines as detailed in the OMB 2 CFR 200.318 through 200.326. State and locally funded grants may require special processing as defined by the terms, conditions, rules or regulations in the grant award notice.
(B) The responsibility for advising the Purchasing Department of any grant related purchasing restrictions or requirements shall remain with the staff of the grant program, the grant director and/or coordinator and the appropriate dean.
Prepayment for Goods or Services:
(A) The District provides prepayments only for very limited types of procurements. These include, but are not limited to, prepayment of subscriptions, dues, memberships, deposits for travel-related expenses, and certain maintenance and license fees.
(B) Prepayment for standard goods or services is prohibited. Exceptions will only be made by approval of the Vice President of Business Services or designee.
(C) Justification must be provided to the Dean of Administrative Services/Controller or designee who must approve all special prepayments.
COD:
The District will not accept COD goods or shipments. All COD packages will be rejected and returned.
Section Two: The Purchasing Organization
Basis for Purchasing Policies and Procedures:
All procurement conducted by the District is governed by the following:
(A) State Statutes and Administrative Rules, i.e., Education and Public Contract Code
(B) Rules and Regulations as set forth by the Chancellors Office.
(C) District Administrative Policies and Procedures.
These policy and procedures are based upon the American Bar Association Model Procurement Code, a generally accepted guide, and are written to comply with all applicable statutes and rules as outlined above.
Authority:
The Vice President of Business Services is transferred authority by the President to sign and to delegate signature authority for various purchasing functions necessary for the day-to-day operation of District services.
Delegation shall include but not be limited to the following District employees:
Dean of Administrative Services/Controller
District Purchasing Agent
Director of Procurement
Director of Food Services, for the day-to-day operation of the cafeteria services only
Delegation shall be in writing by name and updated annually. The Dean of Administrative Services/Controller will review cafeteria purchase orders.
The District is bound to receive and pay only for those goods or services authorized by valid signatures on recognized District purchasing documents.
Dollar limits shall not exceed the bid threshold established by the Chancellors Office. All items over $10,000 shall be forwarded to the Board of Trustees for ratification at the next available Board Meeting. The Board of Trustees will formally award items over the current bid limit. Exceptions will be limited to emergency procurements.
Centralized Purchasing:
The District subscribes to a process of centralized purchasing. This is designed to monitor, standardize, and maximize the use of purchase contracts and agreements that are available to the District to extend fiscal control over the expenditure of all funds and to avoid acquisition of unnecessary or duplicative items.
Purchase Orders (PO):
Purchase Orders are generated by the Purchasing Department for purchases of equipment, supplies, and services.
Section Three: Vendor Information
Certification Regarding Debarment, Suspension or Other Ineligibility (applicable to all agreements funded in part or whole with federal funds)
In order to ensure the effective and efficient administration of and maintain the integrity of Mt. San Jacinto Community College’s (MSJC) procurement practices, it is the policy of MSJC to conduct business legally and only with responsible vendors. Toward this end, MSJC shall have the discretion to exclude from participating in its procurement transaction and activities any vendor who is debarred pursuant, but not limited to, regulations per Federal Register OMB CFR Title 2, Part 200 Subpart C section 200.212 and Executive Order 12549 & 12689.
Debarment is a serious action that may lead to a vendor being excluded from procurement transactions with MSJC for a period of up to three (3) years. Accordingly, this Debarment Procedure provides a vendor subject to a debarment action with notice pursuant to which the seriousness of the vendor's acts or omissions and any mitigating factors will be considered in making any debarment decision. Debarment shall be used only in the public interest and for the College's protection, not for purposes of punishment. MSJC will utilize the Federal Debarred Vendor List (Excluded Parties List System) located at http://www.epls.gov/.
The Debarment Procedure applies to: (1) any vendor who has participated, is currently participating or may reasonably be expected to participate in a covered transaction, irrespective of the source of funding; (2) any vendor who has participated, is currently participating or may reasonably be expected to participate in a related transaction, irrespective of the source of funding; (3) any principal of the vendor describes (1) and (2) above; and (4) any affiliate of the vendor described in (1), (2), or (3) above.
Authority
The Vice President of Business Services is responsible for administering these regulations and is the authority to amend these regulations.
Definition
- A vendor is defined as any outside entity wanting to do business with the District. Vendors may provide goods and/or services. Vendors must be identified and prequalified as deemed for all District procurements and contracts.
- These regulations describe the rules and procedures for setting up new vendors for the District.
Responsibilities
- The pre-qualification of vendors for any procurement purpose will be the responsibility of the Purchasing Office.
- The Accounts Payable Department is responsible for the set-up of new vendors and the maintenance of all approved vendors in the District Vendor Master List. Accounts Payable is also responsible for reporting vendor taxable income in compliance with IRS Form 1099 (1099).
- The Master Bidder’s List is the responsibility of the Purchasing Office. Any Vendor may request to be placed on the bidder’s list for future inclusion in the district bid process. The bidder’s list will be organized by commodity and vendors will be included in bid processes as placed within the bidder’s list. Vendors may request to be placed on the bidder’s list by sending a letter to the Purchasing Office listing all commodities that are provided.
- Initiators of Purchase Requisitions and Requests for Contracts are responsible for providing the full vendor information (address, phone, email, and fax numbers) of the suggested vendor listed on each requisition or contract request submitted to Business Services.
Unauthorized Purchases:
Any unauthorized purchases made by College personnel may become the financial responsibility of the unauthorized purchaser. Only the Vice President of Business Services or designee(s) may authorize district dollars for any purchase. It is the responsibility of the vendor to ensure that they are dealing with the appropriate personnel prior to fulfilling orders for the District.
Unauthorized Shipments Received:
Any shipment received from a vendor without benefit of a purchase order or authorization of the Purchasing office representative will be accepted by the District as a gift. The District is not financially responsible for merchandise sent without prior approval of the Purchasing Office.
Changes to Authorized Orders/Contracts:
All changes to authorized orders and contract must go through the Purchasing Office. All vendors must contact the originating procurement officer to state changes. An official change order will be created for any authorized change. Unauthorized personnel may not make changes to any authorized purchase order or contract. Changes made by unauthorized personnel may become the financial responsibility of the unauthorized user or the vendor.
College Purchasing Policy:
In accordance with purchasing policy (AP 6330), the College will conduct procurement services with an open, competitive atmosphere that is beneficial to the buyer and the seller. The Purchasing Office buys on the basis of quality of product and service, competitive price and delivery. The District also considers goods of the local community and minority-owned businesses.
Supplier Diversity:
The District will attempt maximum utilization of its diverse supplier community and will encourage the use of minority and women-owned businesses according to College goals.
The District will seek active participation through advertisement, invitations to bid and requests for proposals for purchasing activities, and by providing information to minority and women-owned business about the plans, specifications and requirements of contracts and projects at the College.
Vendor Performance & Savings:
As standard purchasing practice, vendors are periodically evaluated on the basis of actual delivery performance compared to promise delivery dates, ability to meet emergency requirements, unauthorized partial deliveries, number of items rejected due to poor quality, and adherence to purchase order terms and conditions. The ability to provide competitive prices consistent with quality and service requirements is of great importance to vendor selection.
Vendor Contract and Sales Calls:
All sales calls on any College campus or College site will be coordinated through the Purchasing Office (with the exception of Cafeteria vendors). Any vendor soliciting any staff offices prior to contacting the Purchasing Office may be asked to leave. All contacts must go through the Purchasing Office prior to any other type of sales call.
District staff is instructed to coordinate with the Purchasing Office prior to having any vendor on-campus for a sales visit.
Vendors must make appointments with the Purchasing Office prior to coming to campus. Cold calls cannot be accommodated.
As appointed by the Vice President of Business Services, Surplus Property Management is the responsibility of the Purchasing Agent. Surplus property is defined as any District owned property that is no longer usable or needed by any District program.
Departments will notify the Purchasing Office of all excess and surplus materials on the Surplus Disposal form. Surplus equipment cannot be stored for an undetermined amount of time. Prior to the determination of the disposal methods, all surplus property will be offered to other District offices and programs if applicable.
Departments with surplus District property may NOT dispose of surplus property nor make arrangements for trade-in or donation. District property may NOT be used for personal use.
The disposal of property or equipment that was purchased with Federal funds must be disposed in adherence to the Federal rules and regulations governing this. The Purchasing Agent and the appropriate Director or Dean will be held responsible for adhering to the specific Federal regulations for each piece of equipment to be disposed of.
The Purchasing Agent shall assist with the determination of the fair market value of excess and surplus property. Methods used for determining value may include quotations, estimates; use of reference guides, online research, and other publications, as well as market indexes.
In accordance with California Education Code §81450.5, the Purchasing Agent may facilitate the transfer of excess or surplus materials to or between other colleges, eligible state educational institutions or other public entities. All proposed sales or donations of excess or surplus materials will be approved by the Board of Trustees. These excess or surplus materials must be offered to other MSJC programs prior to offering to other eligible nonprofit educational institutions or other public entities. Eligible non-profit educational institutions or public entities receiving surplus materials must sign an agreement stating that they will not sell, dispose, or transfer this equipment for the period of one year.
Surplus property shall be offered through public auction, competitive sealed bids, established markets, or posted prices. If unusual circumstances render the above methods impractical, the Purchasing Agents may employ other disposition methods, including appraisal or barter, provided the Purchasing Agent makes a written determination that such procedure is advantageous to the District. All surplus property readied for auction or by other means will be approved by the Board of Trustees. All surplus property will be advertised to District programs and offices two (2) weeks prior to the sale of the property.
Methods of disposition of surplus materials:
(A) Public Auctions, by the District or the District's designee, may be used to dispose of surplus materials. These auctions shall be advertised at least two (2) times prior to the auction date, the last notice to be no less than six days prior to the auction date. All the terms and conditions of any sale shall be available to the public at least 24 hours prior to the auction date; the Purchasing Agent may dispense with posting/publication and sale to the highest bidder if:
a. The surplus property is exchanged with, sold, or donated to a school district, community college district, or other public entity; or
b. The proceeds from sale or lease are expended to the general fund for purposes related to qualified community college facilities and the District complies with specified conditions.
(B) Competitive sealed bidding may be used to dispose of surplus materials. Notice for Sale bids shall be publicly available from the Purchasing Office at least ten days before the date set for opening bids. Notice of the Sale bids shall be mailed to prospective bidders, including those bidders on lists maintained by the Purchasing Office. The Notice for Sale bids shall list the materials offered for sale, their location, availability for inspection, the terms and conditions of sale, and instructions to bidders including the place, date, and time set for bid opening. Bids shall be opened publicly. (Ref. AP 6330)
The award shall be made in accordance with the provisions of the Notice for Sale bids to the highest responsive and responsible bidder, provided that the price offered by such bidder is acceptable to the Purchasing Agent. If the offer is determined to not be advantageous to the District, the offer may be rejected in whole or in part and the bid process will be re-solicited.
(C) Trade-in options may be used to dispose of surplus materials. Prior approval by the Vice President of Business Services or their designee must be obtained before surplus materials are disposed of by trade-in to a vendor for credit on an acquisition. The Purchasing Agent or designee shall approve such disposal. The Purchasing Agent shall base this determination on whether the trade-in value is expected to exceed the value realized through the sale or other disposition of such materials.
Some surplus materials may be deemed as scrap by the Purchasing Agent. These materials are past a useful life; broken beyond repair; hazardous or unsafe; cannot be donated; or were unsold at a public auction or bid. The Purchasing Agent shall negotiate a price through a scrap dealer for these materials or dispose of surplus materials in an appropriate manner.