D-554.2 Purchase of Goods/Services of $5000 or More

PURPOSE/SCOPE

Budget Responsible Managers administer District Board-adopted budgets, which often include purchasing goods or services necessary to accomplish the unit’s purpose/mission. College Policy D-554 – Procurement and the related college procedures specify that the Purchasing Department is responsible for administering the purchase of goods or services totaling $10,000 or more to ensure compliance with procurement regulations. This requirement necessitates budget-responsible managers’ work with the Purchasing Department to complete these transactions.

RESPONSIBILITIES

• Purchasing Manager

• Budget Responsible Managers

PROCEDURE

Step 1. The Budget Responsible Manager (BRM) determines the estimated dollar value of the goods or services to be purchased. If the value is $10,000 or more but less than $45,000, BRM will complete and submit Form A to initiate the procurement process.

• Form A: For Purchases of $10,000 to $45,000 (Competitive Quote/Bid Process).

BRM (or designee) initiates the purchase of budgeted goods (supply, equipment, etc.) and services by providing the Purchasing Department with:

• • Scope and specifications.

  • Budget (general ledger) account to fund the purchase.

  • List of potential vendors (businesses serving the respective trade/industry or delivering the requested services).

  • Desired date of delivery or service time frame.

• Form B: Purchases estimated to cost more than $45,000 (Sealed Bid Process).

BRM (or designee) initiates the purchase of budgeted goods (supply, equipment, etc.) or services by providing the Purchasing Department with all the above and the following additional information:

• • Proposal background.

Proposal requirements (technical specifications, methodology, project timeline, comparable experience). 

• • Proposal timeline.

  • The evaluation scoring matrix must align with proposal requirements (e.g., technical response, comparable experience, financial).

  • Name of individuals who will serve on the proposal evaluation panel.

  • Provide any other relevant information pertinent to the purchase.

NOTE: The Wisconsin Technical College System Financial and Administrative Manual and Procedure D-554.1 – Procurement requires a sealed bid process for all purchases of $50,000 or more. The College’s Purchasing Department implements the sealed bid process when a purchase is projected to reach $45,000 to ensure compliance with procurement regulations should bids come in at or above the $50,000 threshold.

Step 2. The Purchasing Department utilizes the form to prepare the bid solicitation.

Step 3. The Purchasing Department releases a solicitation for competitive bids/proposals. If applicable, the vendor question-and-answer or site visit process is facilitated (see timeline).

Step 4. The Purchasing Department receives bids/proposals by the deadline on the submission date and confirms that each proposer is a responsible bidder.

Step 5. The Purchasing Department confirms whether the sealed bid threshold applies (Form B).

Step 6. If the estimated cost is less than $45,000 (Form A), the Purchasing Department evaluates the vendor submissions to identify the lowest cost responsive bidder/proposer and presents the low bidder quote/proposal to the BRM for review and acceptance. Quotes and bids are time-sensitive, and the BRM must respond affirming the decision to purchase by the deadline to complete the procurement transaction. Failure to affirm by the deadline will result in the cancelation of the procurement transaction.

• The Purchasing Department awards contracts and files documents for audit or cancels transactions if not timely affirmed.

• If the estimated cost exceeds $45,000 (Form B), the Evaluation Panel receives proposals for review and rating.

  • The Purchasing Department aggregates ratings to identify top proposers.

  • Interviews are scheduled, if applicable, and the Evaluation Panel scores interviewees with the top proposer identified. The evaluation panel confirms whether alternate vendors exist (2nd and 3rd vendors are acceptable for selection should top firm references fail).

  • The Purchasing Department completes the vendor reference checks.

  • If references are acceptable, the Purchasing Department awards the contract, notifies other proposers of selection, and files documents for audit.

  • If references are unacceptable and the next alternate vendor exists, the Purchasing Department completes the reference check. If references are acceptable, the Purchasing Department awards the contract, notifies other proposers of selection, and files documents for audit.

    • If references are unacceptable and no alternate vendor exists, the procurement process is terminated, and all proposers are notified of the decision. 

• • • The Purchasing Manager will consult with the Budget Responsible Manager to consider options for moving forward (e.g., amending the scope, specifications, or other requirements and rebid, canceling the planned purchase).

DEFINITIONS

BRM – Budget Responsible Manager, as defined in Procedure D-554.1 – Procurement, is the person responsible for the proper allocation and expenditure of budgeted funds within their division or department.

Scope – A description of the requirements of services to be performed. The scope of work may include material requirements to perform the needed services.

Specification – A description of the physical or functional characteristics or the nature of a supply, service, or construction. It may include a description of any requirement for inspecting, testing, or preparing a supply, service, or construction item for delivery.

The description must include generic specifications. A specific product or proprietary feature can only be referenced by way of example with “or equal” stated.

Potential Vendor List – A list of known, qualified vendors to whom the request for proposal will be directly solicited, in addition to the general release.

Background – A brief description of circumstances, events, etc., relevant in describing the basis for services being sought in RFP, if relevant.