The District Board has approved a policy governing procurement activity at the College. This Procedure directs the purchasing of needed materials and services while ensuring open and free competition and compliance with required laws, statutes, and regulations.

This Procedure elaborates on the policy by guiding acceptable practices when purchasing.

GENERAL REQUIREMENTS

• Every procurement transaction must be formally processed and approved by the proper authority to be a valid claim against the College. All purchases require a requisition and purchase order to be approved and issued before initiating the purchase, except for emergency and procurement card purchases, as this regulation outlines.

• Purchases are made under two (2) primary funds: operational and capital. Capital expenditures are not to be made with operational funds. Budget Responsible Managers must work with the Purchasing Manager to purchase approved capital requests.

• Employees who fail to follow college procurement procedures or do not obtain required approval by proper authority may be personally liable for the cost of the procurement and subject to progressive discipline.

• Purchases from the state, other government, and Wisconsin Technical College System (WTCS) consortium-approved contracts are allowed without competitive procedures, provided the contracting agency selected the vendor through a competitive process.

• Budget-responsible Employees and managers should avoid procuring unnecessary or duplicative items.

• All price solicitation requests should clearly and accurately describe the item or service being procured. Detailed product specifications should be avoided, and the description shall not contain features that unduly restrict competition. A "brand name or equal" description may be used when a clear and accurate description is impractical or uneconomical. The specific features of the named brand that must be met by the supplier/vendor shall be clearly stated.  

• Employees should avoid, whenever possible, using any vendor(s) to develop and write equipment specifications, product descriptions, or service standards. Any vendor who may have received an unfair advantage by participating in the preparation of a price solicitation document shall be disqualified from the procurement process.

• Price solicitations shall include all requirements that the supplier/vendor must fulfill and all other factors to be used in evaluating bids or proposals.

• All procurement transactions should include delivery, handling, shipping charges, installation, setup, and training whenever necessary.

• The College may waive minor irregularities in bids or proposals when awarding. However, any irregularity that could substantially change the price of a product or alter the service to be provided may not be waived.

• The College reserves the right to accept or reject any quotations and to accept the quotation that appears to be in the College's best interest.

• When all other factors are equal, the College will patronize Wisconsin businesses, small and minority businesses, women-owned businesses, and businesses in surplus labor areas.

PURCHASING AUTHORITY

• The President/District Director is the procurement authority for the College.

• The President/District Director has assigned responsibility for administering procurement policies and procedures to the Vice President of Finance and College Operations/CFO.

• Authorization to initiate a purchase and the approving authority is based on the estimated purchase amount and purchase term. The authority to initiate and approve a purchase is outlined in Attachment 1.

VENDOR RELATIONS

Employees involved in procurement transactions shall:

• Act professionally and treat any vendor seeking to do business with the College courteously and respectfully.

• Act in the College's best interest and attempt to obtain the greatest value for every tax dollar expended.

• Give all responsible bidders equal consideration and assurance of unbiased judgment in determining whether their product meets the College's specifications and educational needs.

• Not solicit or accept inducements for their gain.

• Decline gifts that might in any way influence the procurement decision.

SOLE SOURCE AND BRAND NAME PURCHASES

• In certain rare circumstances, purchasing specific brand equipment or sole source purchases directly from a vendor may be authorized without using competitive procurement procedures. Sole source purchases over $10,000 require the approval of the Vice President of Finance and College Operations/CFO before the purchase.

• The purchase of specific brand-name products requires key employers to certify in writing that potential Employees must be trained on that brand of equipment. The written certification must be obtained before the purchase and clearly state why the specific brand is required. 

• The authorized purchaser and Budget Responsible Manager shall obtain the written certification from key employers and present the statements to the Vice President of Finance and College Operations/CFO, attached to the Bidding Waiver form when approval is requested.

• If the specified brand is only available from one vendor, the procurement may be made as a sole source. If the specified brand is available from multiple suppliers or vendors, the procurement shall be made using the appropriate competitive process.

• The purchasing department must document sole source and brand name purchases according to Attachment 1. The Purchasing Manager must include all approved Bidding Waivers for vendors paid more than $50,000 (cumulative) in the annual procurement report to the District Board.

EMERGENCY PROCUREMENTS

• The Vice President of Finance and College Operations/CFO may authorize the most appropriate method of procurement when an emergency or public exigency does not permit a delay caused by competitive procurement. These situations are limited to a threat to the continued operation of the College or the health, safety, or welfare of Students, Employees, or the immediately affected public.

• The authorized purchaser and Budget Responsible Manager shall contact the Vice President of Finance and College Operations/CFO whenever a situation may require emergency procurement. Once approved, the Vice President of Finance and College Operations/CFO shall direct the Purchasing Manager to expedite the procurement process.

• A Bidding Waiver form must be completed and approved for every emergency procurement over $10,000 and shall be maintained by the Purchasing Department.

SOLICITING PRICES

Procurement transactions requiring two (2) or more quotes require the price solicitation to be conducted through an open, competitive process. The solicitation method varies depending on the estimated purchase amount. The procedures outlined in Attachment 1 will be used except in situations approved by the Vice President of Finance and College Operations/CFO.

• Limitation on Service or Equipment Changes After Bid

  • Equipment or service changes that result in the cost of the bid increasing 15% or more from the original bid will require the cancellation of the original bid and a re-bid process for the new specifications included in the bid solicitation.

TECHNOLOGY PURCHASING

• All technology/IT-related purchases must be purchased through the Information Technology Department or the Procurement Department in conjunction with the Information Technology Department. This requirement is in place to ensure the College utilizes the proper procurement channels to use the discounted pricing already available to us, the equipment integrates with and is supported by IT, and the items are properly cataloged in the College’s fixed asset system.

• Instructional Programs are exempt from 1) when program equipment is supported by instructional faculty and does not interface with the College’s technology systems. Other exceptions to this clause may be granted when the Vice President of Finance and College Operations/CFO deems it necessary. 

PROCEDURES FOR NON-CONSTRUCTION PURCHASES UNDER $50,000

Do not require a Sealed Bid process:

• Purchase for $9,999.99 or less.

  • Departments must be diligent to avoid serial purchasing under $9,999.99. A purchase above $9,999.99 may not be broken up into smaller purchases to facilitate a single-source purchase.

  • Purchases do not require multiple bids. Specific brand names and models may be used to purchase items.

  • Purchases may be approved by the Budget Responsible Manager and completed by the Employee holding a college procurement card (P-Card).

  • Records for purchased items must be submitted to the Business Office on time. Employees are encouraged to maintain a record of purchased items.

• Purchases between $10,000 and $49,999.99.

  • All purchases between $10,000 and $49,999.99 are completed by the Purchasing Department.

  • The Purchasing Department will maintain records with copies provided to respective departments upon request. Requires a minimum of three (3) bid solicitations from the Purchasing Department.

  • Specific brand name or model is not allowed unless an “or equal” statement is included. The Purchasing Department will work with the end user to determine general specifications for purchasing the product.

    • Exceptions to this rule are provided in this document's Sole Source and Brand Name Purchases section.

EVERY NON-CONSTRUCTION PROCUREMENT WHERE THE ESTIMATED TOTAL COST IS $50,000 OR MORE AND CONSTRUCTION PROJECT WITH AN ESTIMATED COST OF $25,000 OR MORE

These shall be awarded using a sealed bid or a competitive selection process. See the Definitions to determine which process is most appropriate.

• The Purchasing Manager will facilitate the procurement process to ensure compliance with statutorily mandated protocols.

• Written Solicitation Document

  • A written solicitation document is required for sealed bids and competitive procurements.

  • As a minimum, the written solicitation document shall include the following information:

    • Bid Identification: Unique title or code used for identification purposes.

    • Submission Information: The time, date, and location where the bid/proposal is to be submitted.

    • Purchase Description: Clear and accurate description of the item or service being procured.

    • Sealed Bid/Proposal Statement: A statement that only sealed bids/ proposals will be accepted and that the bid identification must be stated on the face of the bid envelope.

    • Public Opening Information: The time, date, and place of the public opening. The phrase "public opening" must be used.

    • Price Guarantee Statement: A statement that bids must be guaranteed for a specified period following the bid opening to allow the College to review and award. 

    • Affirmative Action Statement: Statement identifying the College as compliant with Affirmative Action laws and regulations.

• • • • The Budget Responsible Manager shall prepare the product specifications or service standards for non-construction procurements. The Purchasing Manager may assist in developing requirements or standards as needed.

      • The Purchasing Manager shall consult with the Director of Facilities, appropriate college personnel, and design professionals to prepare the specification and project scope statement for construction procurements.

      • The Purchasing Manager will prepare the non-technical portion of the solicitation document.

      • The Purchasing Manager will distribute the solicitation document to qualified suppliers/vendors and arrange for the public notice.

• Formal Advertising

  • Each sealed bid or competitive selection shall be published as required by the policies of the WTCS. The Purchasing Manager will ensure the notices are published in the required format.

  • The notice shall be published seven (7) days before the bid/proposal submission deadline.

  • At a minimum, the notice shall include the following information:

    • Bid Identification: Unique title or code used for identification purposes.

    • Submission Information: The time, date, and location where the bid/proposal is to be submitted.

    • Purchase Description: Clear and accurate description of the item or service being procured.

    • Public Opening Information: The time, date, and place of the public opening.

    • Additional Information Statement: Name and telephone number of the contact person for additional information regarding the sealed bid solicitation.

  • Additional notification may also be provided to targeted vendors (i.e., direct mailings to vendors, use of specific industry publications, trade journals, etc.). The Authorized Purchaser or Budget Responsible Manager should advise the Purchasing Manager if additional notifications are desired and provide a list of qualified vendors to whom the information should be sent.

• Public Opening

  • All sealed bids and competitive selection proposals that are timely received must be opened at a public opening at the date and time specified in the public legal notice.

  • A minimum of two (2) Employees shall be present at the public opening.

  • The Purchasing Manager will coordinate the public bid/proposal opening and record all bids/proposals received on a Bid Opening Recap form. The Bid Opening Recap form and one copy of each proposal received will be retained on file in the Purchasing Department. 
    

• Best and Final Offer

  • The best and final offer (BAFO) process represents an optional selection process for sealed bids and competitive selection proposals (i.e., Request for Proposal). It is not part of the contract negotiation process.

  • The BAFO process may be used when:

    • No single response addresses all the specifications.

    • The cost submitted by all proposers is too high.

    • The scores of two (2) or more proposers are very close after the evaluation process.

    • All proposers submitted unclear or deficient responses in one (1) or more areas.

Procedures for the BAFO process shall conform to WTCS regulations.

DOCUMENTATION

• The College shall maintain documentation and records sufficient to detail the significant history of all procurements In Compliance With state statutes and the WTCS Financial and Administrative Manual (FAM).

• Records shall be maintained as outlined in Attachment 1.

• Compliance with Internal Revenue Code Reporting Requirements:

  • The College will comply with Internal Revenue Code requirements to maintain appropriate documentation on file and report disbursements as required by law.

  • The College will not disburse payments of any type until completed W-9 forms are physically on file in the Business Office to document compliance for those payees to which Form 1099 reporting requirements apply.

  • W-9 (or legally valid alternatives) are required before disbursement except for the following payments, which are not subject to 1099 reporting:

    • Payments to Employees for W-2 compensation and accountable reimbursement plans.

    • Payments to corporations.

    • Payments to vendors SOLELY for the purchase of physical products.

    • Payments to federal, state, and local governments, their political subdivisions, or governmental agencies.

  • The College will prepare Form 1099-Misc to report whenever cumulative annual payments exceed $600. Payments comprising services, materials, or products will be reported in their entirety. Reimbursement of travel expenses for which the independent contractor has provided an accounting will not be reported.

CONTRACT PROVISIONS

• Procedure D-150.1 – Authorized Signer of Contracts defines the authority to enter contracts to purchase goods or services.

• Any contract issued by the College shall contain the following provisions:

  • Provisions for termination by the College.

    • Conditions under which the contract may be terminated for default.

    • Conditions where the Contract may be terminated due to circumstances beyond the Contractor's control.

    • Provisions for administrative, contractual, or legal remedies when contractors violate or breach contract terms. 

    • Provision requiring compliance with Executive Order 11246, entitled “Equal Employment Opportunity,” as amended by Executive Order 11375 and supplemented in Department of Labor regulations (41 CFR Part 60).

REQUISITION AND PURCHASE ORDERS

• Every procurement transaction requires initiating and approving a requisition and subsequent issuance of a purchase order before the purchase, except as noted in procurement card transactions below. Purchases made without the preparation of a requisition and the subsequent issuance of a purchase order are prohibited and are not valid claims against the College (except procurement card purchases).

• The requisition and purchase order system, to be fully operative as a means of budgetary control, must be processed without exception from a standard procedure. This system is considered inviolate except in an emergency and only after approval of the Vice President of Finance and College Operations/CFO.

• It is the responsibility of the Budget Responsible Manager and the Purchasing Manager to verify that proper price solicitation has occurred per this regulation. The Budget Responsible Manager shall also ensure that correct accounting numbers are assigned, expenditures requested are in the budget, and sufficient funds are available in the specified account.

• The authorized purchaser may prepare a requisition using one of the following methods:

  • • In most situations, a requisition should be entered electronically using the Banner system. The requisition will be routed automatically to the next approving authority when it is transmitted. Once it has been electronically routed through the approval structure, the requisition will be automatically transmitted to the Purchasing Department, where it will be processed, and a purchase order will be issued.

    • In situations where the method noted above is not possible, a requisition may be typed or hand-written on a pre-printed form. The hard copy form shall be routed through the approval structure to the Purchasing Department. Once the requisition form is received, the Purchasing Department Administrative Assistant shall enter the requisition into Banner and issue the purchase order.

• Only items from one supplier/vendor shall appear on a requisition form.

• Confirming orders may be approved by the Vice President of Finance and College Operations/CFO in unusual or special circumstances when there is insufficient time to wait for the requisition to go through the normal processing procedure. However, a requisition completely executed and approved by the proper authority must be received in the Purchasing Department before a confirming order will be issued.

• Items obtained on approval must comply with all procurement procedures and be processed with a properly executed requisition.

PROCUREMENT CARD (P-CARD) TRANSACTIONS

An authorized purchaser who has a valid college procurement card may make appropriate purchases with their procurement card without a requisition. All college procurement card purchases shall follow the requirements and procedures defined in the Procurement Card Manual in the College Intranet's Business Office section. In addition, all provisions of Attachment 1, including initiating and approving authority, apply to procurement card purchases. To maximize the College's procurement card rebate, the College encourages the use of college procurement cards whenever possible. Purchases above the procurement cardholder’s transaction limit shall be submitted to the Purchasing Department for processing on an electronic requisition form. To avoid the procurement card limit, purchases may not be broken into smaller quantities.

• The Purchasing Manager shall designate approved office supply vendors with preferred contract pricing for all purchases under cardholders’ transaction limit. Unless approved by the purchasing manager, all office supplies shall be procured from these vendor contracts.
• P-Card holders shall have received approval for Travel and Expense Authorizations (completed form) before processing registration or other travel-related purchases on the P-Card. Failure to obtain such approval may result in personal responsibility for unapproved charges.

ANNUAL REPORT

• Annually, the Business Office shall review all procurements of $50,000 or more to determine if similar goods, supplies, or services were acquired and whether a more competitive process should be used in succeeding years. A written report of the findings and recommendations shall be prepared.

• The Vice President of Finance and College Operations/CFO shall present the report to the District Board, which shall take formal action on the report by October 31. Acceptance of the report shall be reflected in the District Board minutes.

DEFINITIONS

Authorized Purchaser – The Employee authorized by the Budget Manager to purchase supplies, materials, etc., needed to operate their program or department effectively. Only the President/District Director or Vice President of Finance and College Operations/CFO are authorized, as agents of the College, to sign contracts for the procurement of goods or services.

Best and Final Offer – The best and final offer (BAFO) is optional in the request for proposal (RFP) selection process.

Budget Manager – The manager responsible for the proper allocation and expenditure of budgeted funds within their division or department.

Capital Purchase – An item with a value greater than $5,000 and a life greater than one year (i.e., not consumable).

Competitive Procurement – An open process used by the College to seek price quotations, bids, or proposals from two or more vendors/suppliers interested in providing the College with a product or service.

Competitive Request for Proposals – The competitive process used to solicit prices when a firm-fixed-price contract is not appropriate or when factors other than price are of primary consideration in awarding the procurement, e.g., professional services where qualifications are of primary consideration. In the case of professional services contracts, service is defined by Administrative Rule TCS 6.05 (1)(i) as "the furnishing of labor, time, or effort by a contractor, not involving delivering a specific end product other than reports that are merely incidental to the required performance."

Procurement – The buying, purchasing, renting, leasing, or otherwise acquiring of any product, supplies, services, rental, equipment, construction, remodeling, or any other transaction that involves an expenditure of college funds.

Purchase – For the process requirements within this Procedure, a “purchase” is each “buying decision,” regardless of the size of individual items or services within the purchase or the period a purchase covers. Similarly, multiple purchase orders for the same vendor/product during the year are a single “purchase.”

Sealed Bids – The competitive process used to solicit prices whenever a complete, adequate, and realistic purchase description is available; two (2) or more responsible suppliers are willing and able to compete; the procurement lends itself to a firm-fixed-price contract and selection of the supplier/vendor can be made principally based on price.

Supervising Executive – Executive with oversight responsibility for a division or department.