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This |
Replaces |
| File |
370.1 |
370.1 |
| Date |
4/26/05 |
7/1/03 |
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ORIGINATOR:
Vice President of Administration
SUBJECT: Implementing Procurement Policies and Procedures
I. Introduction
The University
System of Maryland Procurement Policies and Procedure
(USM Policies) approved December 3, 1999, established
that each institution of the USM shall develop
polices and procedures consistent with the approved
procurement methods and the needs of the individual
institutions. The President of the University of
Maryland University College (“the
University”) approved on July 5, 2000 implementing
procurement policies and procedures for governance
of procurements by the University.
II. Authority and Delegation
- Pursuant to Chapter 515 of the Laws of 1999,
Higher Education – University System
of Maryland-Coordination, Governance and
effective July 1, 1999, “except
as provided in Section 11-203 (E) of the State
Finance and Procurement Article, the University
System of Maryland is exempt from Division II of
the State Finance and Procurement Article.” The
President of the University has delegated to the
Assistant Vice President of Procurement and Business
Affairs who has the authority to implement and
to delegate, as appropriate, authority to implement
these policies and procedures. Authority may be
delegated by the Assistant Vice President for Procurement
and Business Affairs, to procurement officers and/or
other University officials, as deemed appropriate.
Only the Procurement Officer, or other duly authorized
representative, may enter into a procurement contract
governed under these University Policies on behalf
of the University.
III. Purpose
These procurement policies and procedures are designed to support and facilitate the educational, research, and public service missions of the University System of Maryland and its constituent institutions through the acquisition of goods and services by applying best methods and business practices that provide for public confidence in the USM and the University.
The University
Policies establish policies and procedures that
are relevant to the University environment while
providing for a procurement process of quality and
integrity, broad based competition, fair and equal
treatment of the business community, increased economy
in the procurement process, and uniform procurement
procedures. These values promote the purposes of
State procurement law, strike a balance between needed
institution self-management and the Board of Regents’ responsibility
to govern the System.
IV. Applicability
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General Applicability
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These Policies and Procedures apply to the solicitation and award of contracts by the University for the acquisition, rental, purchase or lease of supplies (including equipment, vehicles and information technology requirements), services, maintenance, capital improvements, and architectural and engineering services (all as defined in the USM Policies).
-
Any procurement contract that was executed before the effective date of the USM Policies shall be governed by those laws, policies and procedures in effect at the time of the contract execution.
-
Subcontracts and sub-recipients and other agreements entered into by the University in fulfilling its obligations under federal, state, local and private grants and contracts are not procurement actions and are therefore not subject to these Policies and Procedures. Such transactions are subject to review by the University Office of Legal Affairs for legal sufficiency. The Assistant Vice President for Procurement and Business Affairs shall provide purchasing oversight and control.
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The President, or his designee, may, from time to time, amend these policies and procedures in order that they may remain consistent with current best methods and business practices.
- Exclusions
Except as specifically provided, the USM Policies and the University Policies do not apply to:
-
The lease, sale, purchase, transfer, disposal or any other action involving an interest in Real Property.
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The sale, transfer and disposal of surplus personal property.
-
Collaborative undertakings that support the mission of the University.
-
Reimbursement contracts for which user eligibility and cost is set by law or by rules and regulations (e.g. Medicaid).
-
Intergovernmental contracts or like-business agreements.
-
Purchases for the purposes of resale or remanufacture and subsequent resale.
-
Agreements creating contractual employee relationships.
-
Cultural, entertainment, intercollegiate
athletic contracts, and exhibitions or displays
on university property.
-
Surveying and evaluating architecturally, archaeologically, historically or culturally significant properties, and other than as to architectural services, preparing historic preservation planning documents and educational material.
-
Protection and administration of intellectual property rights.
-
Housing, food and related supply or service contracts for conference facilities.
-
Contracts
of the University for programs and operations
located or implemented out of the United
States. In accordance with COMAR 21.01.03.01-1.C.(2).(c),
University overseas procurements are exempt
from the provisions of State Finance and
Procurement Articles that otherwise apply
to the University System of Maryland. That
aside, acquisition, rental, purchase or
lease of supplies (including equipment,
vehicles and information technology requirements),
services, maintenance, capital improvements
and architectural and engineering services
made outside of the United States shall
be in accordance with written policies
and procedures adopted for the European
and Asian Divisions and shall be consistent
with current best methods and business
practices. To the extent practicable the
overseas policies shall be in accordance
with the procurement methods identified
in the University Procurement Policy. Oversight
and control authority for the University
overseas procurement programs is exercised
by the University’s Assistant Vice President
for Procurement and Business Affairs.
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Any procurement or contract to the extent of any conflict with a governing federal law, regulation, assistance instrument, or other requirement; or the terms of any gift.
- Contracts for the purchase, use, or development of curricular materials.
However,
transactions for the above exclusions shall be
handled in a business like manner as best serves
the interest of the University. Such transactions
are subject to review by the University Office
of Legal Affairs for legal sufficiency. The Assistant
Vice President for Procurement and Business Affairs
shall provide purchasing oversight and control
and shall execute the necessary documentation in
those instances where the contracts involve the
purchasing of goods and services for which the
Assistant Vice President for Procurement and Business
Affairs would sign in the ordinary course of University’s
business.
V. Procurement Methods
The University shall use the procurement methods, policies and procedures listed in Sections IV through XI and Appendix A of the University System of Maryland Procurement Policies and Procedures, approved by the Board of Regents on December 3, 1999 with provisions specific, to the University, as appropriate, set forth below.
- Simplified Procurement Procedures
The University has determined that the $100,000 simplified procurement limit established in the University System of Maryland Procurement Policies and Procedures provides necessary flexibility to enable procurements that support and facilitate the educational, research and public service missions of the University.
Where the simplified procurement order does not exceed $5,000, competition is preferred, but is not required. The Assistant Vice President for Procurement and Business Affairs is responsible and has authority to handle contract administration at the University. Authority may be delegated by the Assistant Vice President for Procurement and Business Affairs, to procurement officers and/or other University officials, as deemed appropriate. The preferred method of purchase for these orders is the Purchasing Card in accordance with the policies and procedures set forth at the University.
Where the simplified procurement order is between $5,000 and $100,000, the procurement must be handled by the Department of Procurement. There shall be competition to the extent practical considering such factors as the availability of vendors, dollar value of the procurement, cost of administering the procurement, delivery time, and sound business judgment and practices. Sole source, single bids or proposals, and emergency orders shall be approved by the procurement officer in accordance with guidelines established for such approval.
The Assistant Vice President for Procurement and Business Affairs, or designee, has broad discretion in fashioning suitable evaluation procedures for simplified procurements including the procurement methods set forth in Part V herein. The procedures prescribed in Parts V.B Competitive Sealed Bidding or V.C Competitive Sealed Proposals of the USM Procurement Policies and Procedures are not mandatory. AT the discretion of the Procurement Director or designee, one or more, but not necessarily all, of the evaluation procedures in V.B or V.C may be used.
If
using, price and other factors, the procurement
officer is to ensure that quotations or offers
can be evaluated in a manner that is fair,
efficient and representative of good, sound
business practices. Formal evaluation procedures,
establishing a competitive range, conducting
discussions, and scoring quotations or offers
may be used but are not required. Procurement
officers may conduct comparative evaluations
of offers. Evaluation of other factors, such
as past performance does not require the creation
or existence of a formal database. Further,
such evaluations may be based on information
such as the procurement officer’s knowledge
of and previous experience with the supply
or service being acquired, customer surveys,
or other reasonable basis.
- Formal Procurement Process
Orders that are reasonably expected to exceed $100,000 require a formal, procurement process in accordance with the procurement methods set forth in Section V of the University System of Maryland, Procurement Policies and Procedures.
VI. Approval of Award Actions
Any procurement
award action that requires review or approval by
a Vice Chancellor, University System of Maryland,
the Board of Regents or the Board of Public Works,
shall be forwarded after review by the Vice President
of Administration. (See Attachment A – Summary
of Reporting Requirements.)
VII. Procurement Contract Execution
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Only the Procurement Officer, or other duly authorized representative, may enter into a procurement contract governed under these University Policies on behalf of the University.
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The University should be the final signatory
in the execution of procurement contract documents.
Therefore, the contract shall first be signed
by the appropriate representative(s) of the
contractor with the authority to bind the firm
to the terms of the contract after which, the
Procurement Officer, or designee, shall sign
the contract documents.
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A procurement contract with a joint venture may involve any combination of individuals, partnerships, or corporations. The contract shall be signed by each participant in the joint venture in accordance with the USM Procurement Policies and Procedures.
- If so delegated by the Assistant Vice President for Procurement and Business Affairs or his/her designee through the use of a Purchasing Card or other specifically delegated authority, the University Departments may procure goods and services up to $5000. All procurements greater than $5000 must be executed by the Department of Procurement.
VIII. Socio-Economic Policies
The University shall, to the maximum extent practicable, purchase supplies and services in accordance with Title 14, Subtitles 1 and 3 of the State Finance and Procurement Article of the Annotated Code of Maryland. The University is committed to promoting business with State Use Industries, the Blind Industries and Services of Maryland, and the minority business community.
ATTACHMENT A: Reporting Requirements
- Prior notification must be given to the USM Vice Chancellor for Administration and Finance for the following:
-
All procurements exceeding $1M:
– Competitive Sealed Bids
– Competitive Sealed Proposals
– Unsolicited Proposals
– Contracts Established by other Institutions
or Agencies
– A/E Services
- Sole Source procurements which:
– Exceed $100,000
– Involve personal services contract exceeding
$25,000
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Prior approval from the USM Vice Chancellor for Administration and Finance is required for any sole source procurement exceeding $500,000.
-
Prior approval from the USM Board of Regents is required for any procurement exceeding $5 million.
- Prior Board of Public Works approval is required for:
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Capital improvement and service contracts exceeding $500,000;
- Modifications to capital improvement and service
contracts in excess of $500,000.
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