1. shopping
2. auctions

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State Capitol – 600 E Boulevard Ave – Dept. 215
Bismarck ND 58505-0230
Phone: 701.328.2960 Fax: 701.328.2961
E-mail: [email protected] Web: ndus.edu
North Dakota State Board of Higher Education
Budget and Finance Committee
Meeting Notice and Agenda
Friday, May 8, 2015
The State Board of Higher Education Budget and Finance Committee will meet by conference call, on Friday,
May 8, 2015 at 10:30 a.m. CDT. The call will originate in the NDUS Office, 10th floor of the State Capitol, 600
E. Boulevard Ave, Bismarck, ND.
Call to Order
1. Review and recommend approval of FY2015-16 Annual Budget Guidelines, including tuition rates –
Ms. McDonald
2. Review and recommend approval of SBHE Policy 803.1- Purchasing – Ms. Glatt
Contact Terry Meyer (701) 328-2963 or [email protected] prior to the scheduled meeting date if auxiliary aids or services are
needed.
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The North Dakota University System is governed by the State Board of Higher Education and includes: Bismarck State College • Dakota College at
Bottineau • Dickinson State University • Lake Region State College • Mayville State University • Minot State University of North Dakota State College
of Science • North Dakota State University • University of North Dakota • Valley City State University • Williston State College
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North Dakota University System
2015-16 Annual Budget Guidelines
Salary Guidelines:
NDUS entities should prepare their 2015-16 payroll budget consistent with their
campus/entity approved salary administration plan, and within the following guidelines:
 Campus/entity-wide average salary increases be a minimum of 3% for
permanent employees beginning with the month of July 2015.
 Compensation adjustments are to vary based on documented performance,
market, equity and other factors such as promotion and changes in workload
and responsibility, and are not necessarily to be the same percentage increase
for each employee.
 All permanent employees whose documented performance levels meet standards are
eligible for a salary increase.
 Probationary employees are not eligible for the general July 1 increase; however, in
unique circumstances, a probationary employee may be eligible for a market or equity
adjustment to address internal or external equity on July 1. In addition, once the
employee is off probation, they may be given all or a portion of other increases, at the
discretion of the appointing authority.
 Health insurance monthly premiums will increase from $981.69 to $1,130.22 on July
1, 2015
 May also use other salary administration tools, including one-time pay adjustments.
 Are authorized to adjust full-time equivalent positions as needed, subject to the
availability of funds.
Strategic Investments
The 2015-2020 NDUS strategic plan includes the following goals, followed by examples of
actions to attain the goals:
 Deliver degrees that are the best value in the nation (Adaptation of open education
resources; exploration of more business and industry contributions; work within
legislative guidance/limitations on tuition)
 Provide programs people want, where and when they need them (Implementation
of new programs based on workforce needs; increase enrollment in STEM
disciplines:
 Equip students for success (Implementation of predictive analytics; increase
retention rates)
 Maximize the strengths of the unified system (Increase collaborative enrollments;
explore administrative collaboration opportunities)
As part of the annual budget document, campuses should specifically identify targeted
investments (dollar amount and the source of funds) to support the attainment of the goals set
forth in the 2015-2020 strategic plan.
Carryover:
HB1003-Section 23 permits the carryover of any unexpended appropriations from 2013-15 to
the 2015-17 biennium. Annual budgets should disclose the estimated carryover and
proposed uses. Campuses must track and report to subsequent appropriation committees on
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the amount and use of these funds, as required per Section 54-44.1-11 of the ND Century
Code.
Tuition:
The final legislative appropriation included a 1.5% “inflation factor” which did not
specifically fund the total state share of the cost to continue FY2015 salary increases, 201517 salary (3% per year), health and utility increases. Column 2 reflects the FY2016 tuition
rate increases that would be necessary to fund the student share only, based on the following
targeted state/student shares that have been assumed for the past several biennia:
UND/NDSU 60/40%; four-year 70/30%; and, two-year 75/25%. The included a student cost
share for the cost to continue of: UND/NDSU 40%; four year 30%; and, two-year 25%).
Column (1)
Campus
Column (2)
Rate Increase
to Fund
Student Share
Column (3)
Maximum
Increase per
HB1003
Column (4)
Requested Annual Tuition
Increase for FY2016 (based on
30 cr. Hrs.)
Dollars
Percent
$66.60
1.9%
$63.94
2.0%
$81.20
2.5%
$89.90
2.5%
$82.52
2.5%
BSC
LRSC
WSC
NDSCS
DCB
1.9%
2.0%
4.5%
3.0%
2.8%
2.5%
2.5%
2.5%
2.5%
2.5%
DSU
MaSU
MiSU
VCSU
4.0%
3.1%
3.9%
3.3%
2.5%
2.5%
2.5%
2.5%
$122.28
$120.25
$123.55
$126.10
2.5%
2.5%
2.5%
2.5%
UND
SMHS
NDSU
3.7%
3.7%
2.4%
2.5%
N/A
2.5%
$159.70
$817.83
$158.50
2.5%
3.0%
2.4%
Connect ND Fee
Approve continuation of the current Connect ND fee of $66 per semester, with no increase in
2015-16.
Mandatory Fee Increases
NDCC 15-10.3-03 limits mandatory fee increases to no more than 1% of the latest available
average full-time, resident, on-campus, undergraduate tuition rate at that institution, unless
the state board determines that an exemption from the requirements of this section is
necessitated as a result of:
1. Student demand, as evidenced by a campus-wide student election or formal action
by an institution's student governing board or committee.
2. Before mandatory fees on students may be increased to support the construction
or renovation of a campus building valued at more than $1 million, the use must
be approved by a majority of the students voting on the question at a campus-wide
election. This subsection does not apply to any construction or renovation for
which the use of mandatory fees was authorized before 7/1/13.
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Approve the mandatory increases, and exemption from the requirements of this section for
WSC (Attachment 1)
Extraordinary Repairs
HB1003 Section 38 requires that institutions “shall provide two dollars of matching funds
from operations or other sources for each one dollar of extraordinary repairs funding. An
institution may not use a transfer from the deferred maintenance funding pool to provide
matching funds under this section.” As part of the annual budget, campuses should disclose
the amount of match, and source of funds, planned for FY2016. If the source is state general
fund operating, a request for a line item transfer (from operations to capital assets) should be
included on Schedule 1 of the annual budget document, as allowed per HB1003 Section 32.
Annual Budget Document and Timelines
The Board’s approval of the 2015-16 annual budget guidelines includes the following:
 2015-16 salary guidelines
 Carryover authority and reporting requirement
 2015-16 approved tuition rate increases – Column 3 above
 2015-16 ConnectND fee of $66 per semester
 2015-16 total mandatory fee increases and exemption from 1% limitation at WSC
 Provide the Chancellor the authority to approve the annual budgets within the
guidelines set forth by the Board; however, any line item transfers from operations to
capital assets line item must be approved by the Board.
As part of the annual budget, campuses and related entities shall:
 Include descriptions and amounts of targeted investments and allocations that will
assist with carrying out the goals set forth in the Board and campuses strategic plans.
 Include descriptions and amounts of reallocations/reductions and the corresponding
effect on ability to carry out Board and campus strategic plans.
 Include a brief explanation of other significant changes in the budget, not specifically
addressed otherwise.
 Disclose 2015-16 tuition rate increase.
 Disclose 2015-16 overall average salary increase and a brief description of related
salary increase policy for FY16.
 Disclose estimated 2013-15 carryover, and the proposed use of these funds.
 Disclose base extraordinary repairs match and source of funds for FY16
Campuses shall submit annual budget schedules to the NDUS Office by no later than June
23, 2015. The Chancellor shall review and approve the annual budgets consistent with the
guidelines established by the SBHE.
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Summary of Proposed Action
SBHE Meeting – May 14, 2015
1. Issue: Proposed revisions to Purchasing policy 803.1 to further define commodities
and services; modify purchasing dollar thresholds and associated bid and
documentation requirements; and restructure under a policy governance model.
2. Proposed motion: Approve proposed changes to SBHE policy 803.1-Purchasing.
3. Background: A recent follow-up audit at DSU raised questions that suggested
further policy clarification was needed to address definitions and documentation
requirements. It provided an opportunity for wholesale review and re-structuring of the
policy and procedures to align with the policy governance model.
The following major changes are incorporated into the revised policy and corresponding
procedure:
• Updates definitions of commodities and services. For services the policy is
clarified that “services” means the furnishing of labor, time or effort by a
contractor, not involving the delivery of a specific end product other than reports
that are merely incidental to the required performance.”
• Restructures and clarifies bid and documentation requirements as follows:
Purchase Price
Goods - Current
Less than $25,000
$25,000 or more
Services - Current
Less than $100,000
$100,000 or more
Quote/Bid
Requirement
Documentation
Requirement
Informal quotes or proposals
from a minimum of three
vendors should be solicited,
when feasible
silent
Must be purchased from
formal bid.
Required
Purchased by negotiation,
telephone, or informal
quote. When feasible,
should be from more than
one vendor.
Must be purchased from
formal bid.
silent
None
Informal quotes or proposals
from more than one vendor
should be solicited, when
feasible
None
None
Required
Goods - Proposed
$5,000 or less
More than $5,000 but less
than $10,000
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From $10,000 but less than
$50,000
$50,000 and over
Informal quotes or proposals
from more than one vendor
should be solicited.
Must be purchased from
formal bid process or a
Request for Proposal (RFP).
Required
None
Informal quotes or proposals
from more than one vendor
should be solicited, when
feasible.
Informal quotes or proposals
from more than one vendor
should be solicited.
Must be purchased from
formal bid process or a
Request for Proposal (RFP).
None
None
Required
Services - Proposed
$10,000 or less
More than $10,000 but less
than $50,000
From $50,000 but less than
$100,000
$100,000 and over
•
•
Required
Required
Realigns policy and procedure consistent with a policy governance model.
Establishes a common form to be used across the NDUS for purchasing
exceptions.
4. Financial implications: Minimal, as more documentation will need to be
maintained.
5. Academic implications:
None
6. Legal/policy issues: None
7. Review Process: Administrative Affairs Council, Chancellor’s Cabinet, legal
8. Enclosures: Revised SBHE policy 803.1
9. Contact person: Laura Glatt, VC for Administrative Affairs, 701-328-4416,
[email protected]
10. Chancellor’s Recommendation: Approve
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NORTH DAKOTA STATE BOARD OF HIGHER EDUCATION
POLICY MANUAL
SUBJECT: FINANCIAL AFFAIRS
2010 June 1, 2015
EFFECTIVE: November 4,
SECTION:
803.1 Purchasing Procedures
______________________________________________________________________
1. Each institution shall develop and implement necessary and appropriate policies and
procedures to ensure compliance with laws and State Board of Higher Education
policies governing purchasing. Officers and employees involved in purchasing
decisions shall comply with all applicable federal and state laws and regulations
relating to conflict of interest and acceptance of gifts and gratuities. Institution
purchasing policies and procedures shall incorporate (or refer to) SBHE Policy 611.4
relating to conflict of interest, and include procedures for disclosing a conflict of
interest. Further, institution purchasing policies and procedures shall address whether
vendors' offers of scholarships, endowments and other premiums contained in bids or
proposals will be considered and, if so, the criteria for evaluating such offers.
2. NDUS institutions shall cooperate and make joint purchases with the Office of
Management and Budget Purchasing Division State Procurement Office when
advantageous to do so. Institutions may also purchase equipment or supplies through
participation in joint purchasing alliances formed with other states or organizations,
when it is advantageous to do so. Additional bids or proposals shall be solicited from
other vendors when required by law or this policy.
3. Personal property, equipment or supplies estimated at less than $25,000 may be
purchased at the discretion of the institution. When feasible, informal quotes or
proposals should be solicited from a minimum of three vendors. Reasonable steps
shall be taken to ensure that qualified North Dakota vendors have an opportunity to
compete for the contract. Personal property, equipment or supplies estimated at
$25,000 or more must be purchased from formal bids. As many sources as possible,
including qualified North Dakota vendors should be solicited.
3. Preference shall be given to North Dakota bidders when required pursuant to
N.D.C.C. §44-08-01.
4. Consulting or other contract services and insurance estimated at less than $100,000
shall be purchased by negotiation, telephone or informal written quote or proposal.
When feasible, quotes or proposals from more than one vendor should be requested to
submit prices to ensure appropriate competition. Reasonable steps shall be taken to
ensure that qualified North Dakota vendors have an opportunity to compete for the
contract. Consulting or other contract services or insurance estimated at $100,000 or
more must be purchased through a formal request for proposal process that includes
procedures for identifying eligible vendors, developing a comprehensive
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requirements document, specifying unique needs, negotiating mutually acceptable
contract terms, and listing minimum proposal requirements. Payments for services
may be made only according to a written contract.
4. Institutions are encouraged to purchase environmentally preferable products as
outlined in N.D.C.C. §§ 54-44.4-07 and 54-44.4-08.
5. All service contracts for a term in excess of three years shall include a provision for
review of contract performance at specified intervals, not less frequently than once
every two years. Service contracts may not exceed a term of ten years.
5. Information Technology purchases are subject to SBHE Policy 1901.3
6. In addition to items excepted under subsection 2, 3 or 4 of this policy, purchases
made from discount contracts under a group alliance or consortium and items
possessing unique characteristics or properties or sole source products or services, do
not require competitive bids if approval is granted according to this subsection 6.
Purchase of an item or service under this exception, is permitted only with the written
approval of the purchasing officer or other official delegated that authority based
upon documentation of: 1) The unique characteristics of the product or service; and 2)
Unavailability of similar products or services of equal value, utility and merit.
The purchasing office shall document in writing the process in all cases in which the
lowest bid is not accepted or approval given for a purchase under this subsection 6.
All required documentation shall be retained according to governing records retention
policies.
a. Definitions
“Sole source” means that the product or service is unique and that the vendor, to
the best of the requestor’s knowledge and belief, based on the thorough research of
the requester, is the only vendor able to furnish the product or service.
“Sole source brand” means that only a particular brand is acceptable for a
particular reason, although the required brand may be available from more than
one source. Something can be a “sole source brand” and still not be a sole source
purchase if more than one dealer can provide competitive quotes.
A “unique” product or service is one of a kind, with no comparable products or
services.
b. Documentation of a sole source item may include:
1. Uniqueness. The good or service being obtained can only be requested from
one manufacturer and no other manufacturers make or provide comparable
products or services that will meet system or institution needs.
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2. Technical Specifications. A highly technical piece of equipment can be
deemed “sole source” if the technical aspects of the piece of equipment are
required or necessary for the work or research and no other manufacturer can
provide those required technical specifications in a similar or comparable
piece of equipment.
3. Standards. If standards have been developed in an effort to streamline system
or institution processes, meet departmental needs, or reduce costs, then this
could be acceptable sole source purchase justification. However, development
of standards usually involves detailed RFP proposals and supporting
documentation. An example of a standard would be the purchase of Dell
computers. There also can be furniture standards. However, a although a
specific manufacturer can be requested or even required, if an item is not
obtainable directly from the manufacturer it is not a sole source purchase since
multiple dealers can submit competitive bids.
4. Compatibility. A piece of equipment can be a sole source purchase due to its
compatibility with existing equipment. For example, if a department has ten
Hon chairs for a conference room and one requires replacement, it is
appropriate to purchase a matching item for the replacement. If ordered
directly from the manufacturer it would be a sole source purchase. If the item
is not available from the manufacturer but only through various dealers of that
manufacturer, then the sole source brand would still require competitive bids.
c. Final determination as to what may be classified as “sole source” shall be at the
discretion of the Purchasing Department. Documentation attached to the sole
source purchase request must be complete and specific, including technical
specifications, if applicable, demonstrating the requesting department’s efforts in
researching the required goods and services and comparable alternatives. In
addition to the sole source purchase justification form, one or more of the
following supporting documents may be required:
1. Product brochure that identify technical specifications;
2. Federal grant or sponsored agreement documentation that shows a particular
piece of equipment was required in order to comply with the grant;
3. RFP’s that demonstrate a bid process was completed to establish a standard;
4. Documentation from a prior order that establishes compatibility requirements.
d. The Purchasing Department is responsible for enforcing this policy and shall be
required to obtain adequate documentation when such documentation is absent
from the purchase requisition. Requesting departments shall provide all necessary
supporting documentation as requested by the Purchasing Department and
requests without adequate documentation may not be processed.
e. Sole source requests based on personal preference, cost or price, perceived
quality, vendor performance, delivery time, trade-in allowances or no cost options
or accessories or other special packages or deals are not permitted; rather, these
items may be considered in evaluating bids or proposals.
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6. Each procurement transaction must be adequately documented for audit and public
record purposes. All required procurement documentation must be maintained in
accordance with governing records retention requirements per SBHE Policy 1912(7).
7. Preference shall be given to North Dakota bidders when required pursuant to
N.D.C.C. Section 44-08-01. Accordingly, preference equal to the preference given or
required in the state of a nonresident bidder shall be given in purchasing any goods,
merchandize, supplies, equipment or professional services, including research and
consulting services.
7. Purchases made in connection with public improvement bids and contracts are subject
to N.D.C.C. § 48-01.2-03, which generally prohibits specified brands.
8. This policy does not apply to purchases of materials, equipment or other items to be
used for a public improvement for which bids are required under N.D.C.C. chapter
48-01.2. Purchases made in connection with public improvement bids and contracts
are subject to N.D.C.C. section 48-01.2-03, which generally prohibits specified
brands.
8. The policies governing purchasing procedures shall be waived when the purchasing
agent or other person delegated that authority determines that an emergency requires
such action. An “emergency” means when the immediate demand for supplies,
materials, or services is such as to seriously hamper the operation of the institution,
and in spite of reasonably available remedial action, would result in damage more
costly than the purchase involved, if purchased through normal procedures. The
nature of the emergency and determination that the circumstances justified waiver of
purchasing procedures shall be documented in writing.
REFERENCES: N.D.C.C. Section § 44-08-01; N.D.C.C. Section § 48-01.2-03;
N.D.C.C. §54-44.4-02 54-44.4-07; N.D.C.C. § 54-44.4-08; NDUS Procedure 803.1
HISTORY:
Article II, Section 2.C.
SBHE Minutes, September 9-10, 1982, pg 5070.
Amendment SBHE Minutes, May 10-11, 1984, pg 5242.
Amendment SBHE Minutes, October 26-27, 1989, pg 5901.
Amendment SBHE Minutes, May 24-25, 1990, pg 6002.
Amendment SBHE Minutes, April 23, 1992, pg 6222.
Amendment SBHE Minutes, January 20, 1994, pg 6430.
Amendment SBHE Minutes, June 26, 1995, pg 6569.
Amendment SBHE Minutes, April 17, 1998,
Amendment SBHE Minutes, April 4, 2000.
Amendment SBHE Minutes, November 17, 2000.
Amendment SBHE Minutes, September 26, 2002.
Amendment SBHE Minutes, December 20, 2007.
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Amendment SBHE Minutes, November 4, 2010.
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NORTH DAKOTA UNIVERSITY SYSTEM
PROCEDURES MANUAL
Subject: FINANCIAL AFFAIRS
June 1, 2015
Effective: March 23, 2011
Procedure: 803.1 Purchasing
PROCEDURE:
1.
SBHE Policy 803.1 requires that each institution shall develop and implement necessary
and appropriate policies and procedures to ensure compliance with laws and State Board
of Higher Education policies governing purchasing. Institution purchasing policies and
procedures shall incorporate (or refer to) SBHE Policy 611.4 relating to conflict of
interest, and include procedures for disclosing a conflict of interest. Further, institution
purchasing policies and procedures shall address whether vendors' offers of
scholarships, endowments and other premiums contained in bids or proposals will be
considered and, if so, the criteria for evaluating such offers. As required under SBHE
Policy 803.1, institutions shall cooperate and make joint purchases with OMB
Purchasing Division to comply with the intent of the North Dakota Century Code 5444.4-02 when it is advantageous to do so. Institutions may also purchase equipment or
supplies through participation in joint purchasing alliances formed with other states or
organizations, when it is advantageous to do so. Additional bids or proposals shall be
solicited from other vendors when required by law or this policy.
1. Definitions:
a. “Procurement officer” means an individual duly authorized to enter and administer
purchasing contracts and make written determinations with respect thereto and also
includes an authorized representative acting within the limits of authority.
b. “Commodities” means all property, including equipment, supplies, materials,
printing, insurance, and leases of equipment.
c. “Services” means the furnishing of labor, time, or effort by a contractor, not involving
the delivery of a specific end product other than reports that are merely incidental to
the required performance. The term includes professional services.
d. “Sole source” means that the commodity or service is unique and that the vendor, to
the best of the requestor’s knowledge and belief, based on the thorough research of
the requestor, is the only vendor able to furnish the commodity or service.
e. “Formal Bid” means a process by which sealed bids are received in response to a
solicitation for a well-defined commodity or service. Award is made to the
responsible bidder whose bid is the lowest price and responsive to the specifications
and other solicitation requirements.
f. “Request for Proposal” (RFP) means a process by which sealed bids are received in
response to a solicitation for a certain commodity or service for which cost will not be
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the only factor to a successful proposal. Award is made to the responsible bidder
whose proposal is determined to be the most advantageous, based on cost, quality,
experience and/or other factors. The solicitation is a comprehensive document
outlining specifications, unique needs and minimum proposal requirements.
2. Requirements governing when bids or proposals are required and when items or services
may be purchased at the discretion of the institution are established in SBHE Policy
803.1. As a general rule, personal property, equipment or supplies estimated at less than
$25,000 may be purchased at the discretion of the institution; personal property,
equipment or supplies estimated at $25,000 or more must be purchased from formal bids.
Also, as a general rule, consulting or other contract services or insurance estimated at less
than $100,000 may be purchased by negotiation or telephone or informal quote or
proposal; consulting or other contract services or insurance estimated at $100,000 or
more must be purchased through a formal request for proposal process.
2. Procurement Department Responsibilities:
Each institution shall designate one or more persons to act as the institution’s lead
procurement officer. Lead procurement officers may delegate purchase authority to
employees as needs of the institution dictate. The delegation will specify any limits and
the designated employee may only make purchases within the scope of the delegated
authority.
a. The procurement department is responsible for enforcing this procedure and shall be
required to obtain adequate documentation when such documentation is absent from
the procurement requisition. Requesting departments shall provide all necessary
supporting documentation as requested by the procurement department and requests
without adequate documentation may not be processed.
3. When formal bids or proposals are not required, institutions should when feasible solicit
informal quotes or proposals from more than one vendor and take reasonable steps to
ensure that qualified North Dakota vendors have an opportunity to compete for the
contract.
3. Procurement Requirements:
With the exception of procurements specifically exempt from competitive procurement,
the following procurement requirements apply to commodities and services:
For Commodities
Purchase Price
$5,000 or less
More than $5,000 but less
than $10,000
From $10,000 but less than
$50,000
Quote/Bid Requirement
Documentation Maintenance
Requirement
None
None
Informal quotes or proposals None
from more than one vendor
should be solicited, when
feasible.
Informal quotes or proposals Required
from more than one vendor
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$50,000 and over
should be solicited. If quotes
are not received from more
than one vendor, the
Alternate Procurement
Request form, or other noncompetitive exception
document is required.
Must be purchased from
Required
formal bid process or a
Request for Proposal (RFP).
For Services
Purchase Price
Quote/Bid Requirement
$10,000 or less
More than $10,000 but less
than $50,000
None
Informal quotes or proposals
from more than one vendor
should be solicited, when
feasible.
Informal quotes or proposals
from more than one vendor
should be solicited. If quotes
are not received from more
than one vendor, the
Alternate Procurement
Request form, or other noncompetitive exception
document is required.
Must be purchased from
formal bid process or a
Request for Proposal (RFP).
From $50,000 but less than
$100,000
$100,000 and over
Documentation
Maintenance Requirement
None
None
Required
Required
a. Reasonable estimated value should be assigned to a purchase to ensure that the proper
level of authority, competition and documentation is achieved. For commodities, the
entire amount of the purchase price, including shipping and handling and all other
related charges, such as installation or maintenance agreements, is to be included. For
services, the entire amount of a service contract includes the initial term and all
possible extension and renewal options. For example, the value of a one-year
contract estimated at $15,000 per year with 3 renewal options is $60,000.
b. Determination as to utilization of a formal bid process versus an RFP is the
responsibility of the procurement officer and is typically dependent on the commodity
or service which is the subject of the procurement. In the most general terms, an RFP
is preferred when the commodity or service cannot be evaluated by cost alone. RFP
process must include procedures for identifying eligible vendors, developing a
comprehensive requirements document, specifying unique needs, negotiating
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mutually acceptable contract terms and list minimum proposal requirements. Specific
times and dates for bid opening must be specified. A bid bond or certified check may
be required.
c. As many sources as practical including qualified North Dakota vendors should be
solicited.
d. All commodity and service contracts for a term in excess of three years shall include
a provision for review of contract performance at specified intervals, not less
frequently than once every two years. Contracts may not exceed a term of ten years.
4. When formal bids are required, institutions should solicit proposals from as many
sources, including North Dakota vendors, as possible. Specific times and dates for bid
opening must be specified. A bid bond or certified check may be required.
4. Non-Competitive Purchases:
Sole source, emergency or purchases made from discount contracts under a group
alliance or consortium for goods or services do not require competitive bids based on
written approval of the procurement officer or other official delegated that authority and
as documented on the Alternate Procurement Request form. Sole source requests based
on personal preference, cost or price, perceived quality, vendor performance, delivery
time, trade-in allowance or no cost options or accessories or other special packages or
deals are not permitted; rather, these items may be considered in evaluating bids or
proposals.
5. According to subsection 6 in SBHE Policy 803.1, purchases made from discount
contracts under a group alliance or consortium and items possessing unique
characteristics or properties or sole source products or services may be exempt from the
competitive bid requirement. This exemption applies only with the written approval of
the purchasing officer or other official delegated that authority based upon documentation
of:
a. The unique characteristics of the product, and
b. Specifically what task is to be performed requiring the unique characteristics of the
product.
The purchasing office shall document in writing the process in all cases in which the
lowest bid is not accepted or if approval is given for a purchase made from discount
contract or for items possessing unique characteristics or sole source products or services
under subsection 6 in Policy 803.1. Documentation shall include a completed NDUS
“Sole Source Purchase Justification.” (Insert link) All required documentation shall be
retained according to governing records retention policies.
5. N.D. Bidder Preference:
Preference shall be given to North Dakota bidders when required pursuant to N.D.C.C.
§44-08-01. Accordingly, the Reciprocal Preference Law requires the preference given to
a resident North Dakota bidder be equal to the preference given or required in the state of
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a nonresident bidder when purchasing any goods, merchandise, supplies, equipment, or
professional services, including research and consulting services.
a. When considering a bid from a nonresident bidder, determine whether the bidder’s
state of residence has a preference law, see the OMB Guidelines to North Dakota
Preference Laws for a list of the state preference laws, and increase the nonresident
bidder price by the same percentage. For example, a nonresident bidder submits a
price of $10,000. Laws in that bidder’s state of residence require a 5% preference for
vendors resident in that state. Increase the nonresident bidder’s price by 5% before
evaluation.
b. Additionally, when accepting bids for the provision of professional services, including
research and consulting services, the contract shall be awarded to a resident North
Dakota bidder if the bid of the resident North Dakota bidder is equal to or less than the
low bid of a nonresident bidder and the resident North Dakota bidder has an
acceptable performance history and meets the minimum requirements specified in the
bid solicitation.
6. Preference shall be given to North Dakota bidders when required pursuant to N.D.C.C.
Section 44-08-01. Accordingly, preference equal to the preference given or required in the
state of a nonresident bidder shall be given in purchasing any goods, merchandize, supplies,
or equipment. Also, when accepting bids for the provision of professional services, including
research and consulting services, the contract shall be awarded to a resident North Dakota
bidder if the bid of the resident North Dakota bidder is equal to or less than the low bid of a
nonresident bidder and the resident North Dakota bidder has an acceptable performance
history and meets the minimum requirements specified in the bid solicitation.
7. As provided under SBHE Policy 803.2, these procedures may be waived and a purchasing
agent or other officer delegated such authority determines that an emergency requires such
action. “Emergency” means that the immediate demand for supplies, materials or services is
such as to seriously hamper the operation of the institution or system and, in spite of
reasonable remedial action, would result in damage more costly than the purchase involved,
if purchased through normal procedures. The nature of the emergency and determination that
the circumstances justified waiver of purchasing procedures shall be documented in writing.
REFERENCE:
HISTORY:
N.D.C.C. §44-08-01; SBHE Policies Policy 803.1, 803.2 803.1, Alternate
Procurement Request Form
Chancellor’s Cabinet Meeting, June 2001
Chancellor’s Cabinet Meeting, September 26, 2002
Chancellor’s Approval, October 8, 2009
Chancellor’s Cabinet Meeting, March 23, 2011
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