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Procedure: Purchasing Policies: Model Oregon Community Colleges PRIMARY THRESHOLDS 3.00 Competitive Procurement All purchases by Oregon community colleges shall be awarded by competitive procurement processes except those which total less than the thresholds shown below or those exempted below. 3.01 PRIMARY THRESHOLDS Rule: Competitive procurement processes need not be used for the procurement of goods and services which total, on a completed project cost basis, less than $5,000. Competitive processes shall be used for the procurement of goods and services which total, on a completed project cost basis, $5,000 or more. Informal processes may be used for projects totalling between $5,000 and $25,000; formal processes shall be used for the procurement of goods and services which total, on a completed project cost basis, $25,000 or more. Comment: Completed project cost basis means the total cost of performing one discrete, identifiable totality of work, including all components, shipping, warranty costs, service agreements obtained in conjunction with the purchase contract, reimbursables, and any other associated costs. 3.02 CONTRACT AMENDMENTS Rule: Contracts for goods and services may be amended while in progress. Such amendments shall not exceed a total of 33 percent of the original contract value for goods and services and 50 percent of the original contract value for public works (construction). Comment: Contracts are living entities. The work they represent is subject to change at any moment; contract amendments record and formalize those changes. Options for change orders are needed for contract administrators and contractors to perform the work in the most efficient manner. Exemptions from Competitive Processes ALPHABETICAL LISTINGS
3.10 ADVERTISING SERVICES Rule: Competitive procurement processes need not be used for the procurement of all forms of advertising, regardless of dollar value. Comment: None. 3.11 AGENTS OF RECORD Rule: Agents of Record shall be selected using competitive processes for professional services unless otherwise exempted through another portion of this rule. Competitive procurement processes need not be used for executing the purchase recommendations of Agents of Record who are selected by competitive proposals and who are acting on behalf of the institution to provide purchase recommendations. If such agents are not selected by competitive processes, then each procurement an agent recommends on behalf of the institution shall comply with these rules for the respective type and dollar value of procurement. Comment: An agent is selected for and delegated to perform certain tasks on behalf of the institution. An Agent of Record is designated to identify and recommend purchases in a certain area of expertise or endeavor. Such an agent may also be designated a consultant in special circumstances (although consultant is not the technically correct term for agency activities and its use may prevent legal remedies associated with agency activities). In any case where a selection or recommendation is made by an Agent of Record for procurement on behalf of the institution over the quotation threshold, the Agent of Record shall document the file with enough competitive information or reasons for lack thereof and with information which document that, in the agent's judgement, the procurement is in the best interest of the institution. Agents may be used for the selection and procurement of such commodities and services as: 1. Advertising (radio/TV/newspaper/periodical) See also Professional Services, General 3.12 ALCOHOLIC BEVERAGES Rule: Competitive procurement processes need not be used for the procurement of any type of alcoholic beverages. Comment: Because the purchase of these commodities is so brand-specific, dependent upon subjective tastes, and subject to availability and substitution, it is inappropriate to purchase these items on a competitive selection basis. Where equal competition can be achieved in this field, it is certainly recommended. 3.13 ART AND OTHER PRODUCTS OF THE CREATIVE PROCESS Rule: Competitive procurement processes need not be used for the procurement of art and other products of the creative process. Comment: Products of "the creative process" could include such things as miscellaneous written materials, books, periodicals, computer generated art, lesson plans, electronic and electronically-generated art, music in all its original forms, etcetera. See also Copyrighted Materials. 3.14 ATHLETIC SUPPLIES Rule: Competitive procurement processes need not be used for the procurement of athletic supplies for internal use by college athletes; however, in all cases, educational discounts shall be requested from the selected supplier and costs shall be compared with those being offered to not less than two other similar institutions. Comment: Athletic supplies may be purchased by brand name definition in any quantities without competitive processes. In all cases where the value is greater than the quotation threshold, the file shall be documented with information supporting the purchase, the reason that it was inappropriate to obtain competitive information and the fact that an educational discount was sought. See also Resale (Purchases For) and Brand Names and Proprietary Product Names 3.15 BANKING SERVICES Rule: Competitive procurement processes need not be used for the procurement of banking services. Banking services shall be reviewed not less than once every three fiscal years. If it is desired to retain the current provider, a written determination shall be made that the current services are competitive and it is in the best interest of the institution to renew the services for up to another three years. If, for any reason a new provider is sought, competitive negotiations may take place between the institution and any number of providers until an acceptable provider is selected. Comment: Much like the selection of audit providers, it is generally recommended that banking services be reviewed in detail for competitive pricing not less than every five years. 3.16 BRAND NAMES AND PROPRIETARY PRODUCT NAMES Rule: Solicitation specifications shall not expressly or implicitly require any product of any particular manufacturer or seller except as authorized in these rules. 1. "Or Equal" Specification. An institution may specify a particular brand name, make or product suffixed by "or equal," "or approved equal," "or equivalent," "or approved equivalent," or similar language if there is no other practical method of specification. 2. Specifying a Particular Brand Name, Make, or Product. An institution may specify a brand name, make, or product without an "or equal" or equivalent suffix if there is no other practical method of specification, after documenting the procurement file with the following information:
b. Efficient utilization of existing equipment or supplies requires the acquisition of compatible equipment or supplies; or c. All comments from potential suppliers on the issue (following a good faith effort to notify local or generally known suppliers of the specified product and inviting such suppliers to submit comments); or d. Findings of current market or product research to support the determination that the product is extremely unique and is available from only one seller. Comment: Where there is more than one source of the desired item and the item is NOT available directly from the manufacturer or original equipment supplier and/or an active market exists for the item, the procurement shall be treated as any other for which there exists an active, competitive market, i.e., the procurement shall not be exempt from competitive processes even though brand names and/or proprietary product names may be used to specify the item. See also Sole Source Purchases. 3.17 COMPUTER HARDWARE AND SOFTWARE Rule: Competitive procurement processes need not be used for the procurement of computer system hardware and software provided the hardware or software is required to match or be specifically compatible with existing equipment (see "Brand Names and Proprietary Product Names") or that the items are copyrighted (see "Copyrighted Materials") and available from only one source. Comment: Where there are more than one reseller of software and/or hardware and the items are NOT available directly from the manufacturer or original equipment supplier and an active market exists, the procurement shall be treated as any other for which there exists an active, competitive market, i.e., the procurement shall not be exempt from competitive processes. 3.18 COPYRIGHTED MATERIALS Rule: Competitive procurement processes need not be used for the procurement of copyrighted materials, regardless of dollar amount, if there is only one known supplier of such materials, or, the item(s) is/are being purchased directly from the manufacturer or copyright holder. Comment: Examples of copyrighted materials typically covered by this exemption include, but are not necessarily limited to, magazines and other periodicals, textbooks, workbooks, curriculum kits, reference materials, audio tapes, video tapes, calculators such as those used for aircraft navigation, most software and products of the visual, aural and written arts. It should be noted that if there is more than one supplier of copyrighted materials (especially software) and the materials are NOT being purchased directly from the writer, manufacturer or other original source, every attempt should be made to establish a competitive selection process in order achieve the greatest economy. Also note that nothing herein applies to trademarks. 3.19 EMERGENCIES Rule: Competitive procurement processes need not be used for the procurement of any materials or services if an emergency exists and the emergency consists of circumstances creating a substantial risk of loss, damage, interruption of services, potential preventable loss of public funds or threat to public health or safety that could not have been reasonably foreseen and requires prompt execution of a contract to remedy the condition. The Lane Community College Board of Education, president or delegate may declare the existence of the emergency, which shall authorize the institution to enter into an emergency contract. Immediately after the declaration, the president or delegate shall make written findings describing the emergency conditions that require prompt execution of the contract and of the harm anticipated to result from failing to establish the contract on a timely basis. To the extent reasonable under the circumstances, competition shall be encouraged by attempting to make informal solicitations or to obtain informal quotations from potential suppliers of goods or services. Following execution of an emergency contract the responsible officer shall:
2. If the total award exceeds the threshold for formal public bidding, the board of education shall be notified at its next available public meeting and provided with an opportunity to discuss the emergency, the award and ratification thereof.
3.20 EXCEEDING THRESHOLDS FOR QUOTATIONS OR FORMAL BIDDING Rule: When an award has been appropriately made in compliance with all applicable rules (i.e., a legal contract has been established), the resulting contract may be amended in conjunction with the prevailing rules for such alterations, even though the amended value may rise above a limit for obtaining quotations or for formal public bidding. Comment: Such contracts need not be re-quoted or re-bid provided that they are amended appropriately and within the limitations of such amendments. If the limitations on amendments will be exceeded by a proposed amendment, either an exemption from public bidding must be sought or the project terminated and re-bid. 3.21 FUELS Rule: Competitive procurement processes need not be used for the procurement of automotive and aviation gasoline, diesel fuel and lubricants if the institution seeks competitive quotes from local suppliers (if available) and the institution makes its purchase from the least expensive source which provides the best service in terms of fuel quality, delivery time and safety of delivery and transfer, and retains written justification for the purchase made. Comment: Requirements contracts or spot purchases may be awarded for fuels. Emphasis should be on total compliance with federal, state and local safety requirements including training of contractor staff, performance evaluations and substance abuse testing when fuels are being delivered to the site of an institution (such as would be the case when aircraft are being fueled or when in situ tanks are being filled). 3.22 INSURANCE Rule: Competitive procurement processes need not be used for the procurement of all types of insurance provided that such insurance is procured through an agent (generally called an Agent of Record), designated for the purpose and selected through the processes for selection of personal services. In all cases, insurance purchases recommended by an agent shall be documented as to the selection process, the relative costs and reasons for the recommendation. If an Agent of Record is not utilized, competitive processes involving quotations, bids or proposals shall be used for the procurement of insurance. Comment: None. 3.23 INTERGOVERNMENTAL PURCHASES Rule: Competitive procurement processes need not be used for the procurement of goods or services from another government agency or political subdivision when the rules of Oregon Revised Statute 279.015 (g)(A) are followed. Comment: None.
3.24 INTERGOVERNMENTAL COOPERATIVE PURCHASING PARTICIPATION Rule: Pursuant to Oregon Revised Statute 279.015 (g)(A) other governmental agencies, bodies or districts (hereinafter, Participating Agencies or Institutions) may participate in any award resulting from any solicitation which has been accomplished in compliance with Oregon statutes, as if said agencies had generated the solicitation and made the award on their own behalf. The contractor shall have the option of declining participation in any such agreement; that is, contractor participation in work or sales resulting from intergovernmental agreements shall be voluntary. If the contractor chooses to participate in such agreements, all agency relationships including those for contract administration, ordering, deliveries, approvals, billing and collections shall be between the participating institution and the contractor; the originating agency shall not participate in any aspects of commercial activity between the contractor and the participating agency. If the contractor agrees to participate, all such participation shall be on the basis of the original solicitation, the resulting award and any legal changes thereafter, except that reasonable changes in pricing and terms may be negotiated directly between the participating agency and the contractor to accommodate differences in delivery distances and local conditions. All such changes shall be solely between the contractor and the participating agency. Comment: In general, the results of any solicitation, formal or informal, which has taken place under the rules of Oregon Statutes and has resulted in an award, and is current, i.e., not closed, terminated, in abeyance or in default, may be utilized by any other agency pursuant to ORS 279.015 (g)(A). Even though an agreement under ORS 279.015 (g)(B) is not required, it is sound practice for each institution to maintain a record of all users of their contracts and all contracts of other institutions in which they are participating. 3.25 INVESTMENTS Rule: Competitive procurement processes need not be used for investment of public funds or other funds being administered by the institution or the borrowing of funds when such investment or borrowing is contracted pursuant to duly enacted statute, ordinance, charter, or constitution. Comment: Institutions should check the rules of donors and grantors of funds to ensure that no restrictions apply to interim or long-term investment of funds entrusted to the institution. 3.26 MEDICAL, DENTAL AND SCIENTIFIC LABORATORY INSTRUMENTS AND SUPPLIES Rule: Competitive procurement processes need not be used for the procurement of medical, dental and scientificlaboratory instruments and supplies (supplies includes cadaveric organs, transplant organs, other transplants and all medical/dental teaching supplies). Additionally, these supplies may be procured in any quantity and any dollar amount by use of brand names and product names, provided that such purchases comply with the requirements for use of brand name and product name specification. Comment: Where competition exists, it is strongly recommended that competitive quotations be solicited and costs be compared. 3.27 PERISHABLES (CHEMICALS, FOOD, LABORATORY SUPPLIES, ETC.) Rule: Competitive procurement processes need not be used for the procurement of perishables provided that the perishability and commensurate quality is of greater importance than the cost to the institution. Comment: It is the intent to permit such items as foodstuffs and scientific supplies which have definitive shelf lives, and associated attributes such as quality and longevity, to be purchased without strict competitive processes based upon price. Shelf life and the associated attributes may be the determining factors. This exemption enables the buyer to decide on a source based upon time since manufacture, remaining shelf life, interim quality and various states of decay of the product. If longevity is not an issue and multiple sources exist, standard procurement practices shall be utilized. 3.28 PRICE REGULATED ITEMS Rule: Competitive procurement processes need not be used for the procurement of goods or services where the rate or price for the goods or services being purchased is established by federal, state, or local regulatory authority. Comment: None. 3.29 PROFESSIONAL SERVICES, GENERAL Rule: Every contract for professional and personal services shall be based upon screening and selection procedures developed by the institution. Where a particular professional or personal services contractor has unique knowledge or skills, or has specialized knowledge or capabilities gained through years of cumulative service to the institution or through specialized events, and it is desirable to retain this body of experience, the institution may waive the requirement for a formal selection process and may authorize the award on the basis of a single source. The institution may also waive the requirement for a competitive selection process if it is deemed to serve the best interests of the institution. Comment: Examples of contractors which could qualify under this waiver are architects and engineers who have designed buildings for the institution and attorneys who have a preponderance of historical knowledge of institutional operations and legal affairs. In general, sole source contracts for personal and professional services should be reviewed at least once every year for the propriety of continuation without a competitive selection process. Unless there are compelling reasons not to do so, competitive selection processes for personal and professional service contractors should take place at intervals not greater than three years. 3.30 REAL ESTATE Rule: Competitive procurement processes need not be used for the procurement and disposal of real estate. Comment: Many real estate transactions must, of necessity, take place in private in order to ensure that public disclosure will not have negative affects upon price or other contractual considerations. If the institution has the statutory authority to perform real estate transactions, all such transactions are considered to be external to the public procurement process (which is limited to the issues of personal property and services and excludes real property). 3.31 REPAIR AND OVERHAUL OF EQUIPMENT AND MAINTENANCE AGREEMENTS Rule: Competitive procurement processes need not be used for the procurement of repair and overhaul of equipment and for maintenance agreements subject to the following conditions:
2. Service and/or parts required are for sophisticated equipment for which specially trained personnel are required and such personnel are available from only one source; or 3. Maintenance agreements must be procured from the provider of the equipment being maintained in order to be valid, preserve warranties, provide the best possible service or conform with other similar agreements being provided by the same provider for maximizing economy and/or servicing functions. 3.32 RESALE (PURCHASES FOR) Rule: Competitive procurement processes need not be used for the procurement of items being purchased by the institution for resale. Comment: This exemption applies to materials (goods) only. The exemption is intended to permit institutional auxiliary funds and like operations to compete on the open market without undue restrictions so that end-user customers can obtain pricing similar to that which characterizes private enterprises. Functions such as bookstores, food services, medical and dental stores, students automotive and mechanical stores, and miscellaneous students stores (such as the resale of aircraft books and navigation computers for instruction in flight technology and scientific calculators for science stores) are intended to be exempt from competitive purchasing rules provided that the items are specifically for resale (as opposed to internal use or consumption). 3.33 SPACE RENTALS (HOTELS, CONFERENCES, TEMPORARY OFFICES...) Rule: Competitive procurement processes need not be used for the rental of real estate, floor space or other short- or long-term rentals of physical space. Comment: Many space rental transactions must, of necessity, take place in private in order to ensure that public disclosure will not have negative affects upon price or other contractual considerations. Additionally, rentals are subject to considerable personal judgement in the selection of the space, its availability, its surrounds, its geographical location, the landlord and the contract terms. Many of these items are not subject to negotiation or are extremely difficult to compare objectively. Moreover, many such rentals must be finalized in extremely short periods, occasionally within minutes, or the arrangement may be lost to another offeror. It is not in the best interest of the public to disadvantage the institution by necessitating an arduous selection process for rentals of space which, of necessity, are highly subjective activities. 3.34 SOLE SOURCE PURCHASES Rule: Competitive procurement processes need not be used for the procurement of goods or services when the kind or type desired is available only from one source. An institution may purchase a particular product or service available from only one source, after documenting the procurement file with findings of current market research to support the determination that the product is available from only one seller or source and,
2. instructional parameters suggest that such equipment, supplies, or services are the most appropriate method of achieving the instructor's goals and objectives of the courses being offered. It is not the intent of this exemption to permit instructors to specify their favorite products. Where instructors specify a sole source item, the file shall be clearly documented with clear and precise reasons why that product, and that product only, will fulfill the needs and objectives of the instructional process being served. In the past, some instructional programs have been thwarted by procurement regulations. It is the specific objective of these rules, within the bounds of good business practice and general public procurement requirements, to provide maximum support of all instructional initiatives. Considerable judgement must be exercised in the interpretation of this rule, both by the budget authority in defining the true need, and the procurement officer in permitting the requested exemption. Where there is more than one source of the desired item and the item is NOT available directly from the manufacturer or original equipment supplier and an active market exists, the procurement shall be treated as any other for which there exists an active, competitive market, i.e., the procurement shall not be exempt from competitive processes. See also Brand Names and Proprietary Product Names. 3.35 SPEAKERS, LECTURERS & PERFORMERS Rule: Competitive procurement processes need not be used for the procurement of the personal services of speakers, lecturers and performers. Comment: Because the services of these individuals vary so greatly and are so unique to each individual, it is inappropriate to retain such services based upon any other consideration than the judgement of the institution as to which provider best suits the needs of the institution. 3.36 STUDENT LOAN COLLECTION SERVICES Rule: Competitive procurement processes need not be used for the procurement of student loan collection services provided that not greater than every three years a survey is conducted to ensure that fees being charged by the current provider are generally commensurate with the averages within the industry. Comment: This exemption is not intended to preclude an informal or formal selection process for student loan collection services if the institution desires such a process. 3.37 TRAVEL SERVICES Rule: Competitive procurement processes need not be used for the procurement of travel and related services if the institution finds that it is in its best interest to permit laizzez faire travel placement. Comment: None. 3.38 USED PERSONAL PROPERTY Rule: Competitive procurement processes need not be used for the procurement of used personal property if the institution has determined that the purchase will result in cost savings and will not diminish competition or encourage favoritism. For purchases of used personal property or equipment costing $15,000 or more, institutions shall, where feasible, obtain three competitive quotations, unless such comparisons are highly impractical to obtain. Procurement files pertaining to used personal property shall contain documentation of price comparisons and attempts to secure competitive pricing as much as is practical. When the value of any such purchase exceeds the threshold for public bidding as may be set from time to time by the board of education, such purchases shall be authorized and/or delegated only by the college president who shall notify the board of such purchases at the next regularly scheduled meeting of the board of education. Comment: Used personal property is property which has been placed in use by a previous owner or user for a period of time recognized in the relevant trade or industry as qualifying the personal property or equipment as "used," at the time of purchase. Used personal property generally does not include property or equipment of which the institution was the previous or current user, whether under a lease, as part of a demonstration, trial or pilot project, or similar arrangement. The additional liberty for purchasing used personal property is essential for those who participate in auctions or other spot sales where it is impractical to utilize conservative procedures because of the necessities of the selling process. WEB ADDRESSES OF APPLICABLE PURCHASING STATUTES AND RULES Oregon Revised Statute 279 This is the primary purchasing statute which governs all public sector purchasing activity in the state. Neither exemptions nor exceptions can be made from the requirements of this statute. http://landru.leg.state.or.us/ors/279.html Oregon Administrative Rule 125 This is the primary administrative rule which governs all state government purchasing. This rule is optional for the college; however, the board has adopted this rule to apply to college activities. http://arcweb.sos.state.or.us/rules/cumindex_latest.html Oregon Administrative Rule 137 This is the primary rule which governs all bidding procedures for state solicitations. This rule is optional for the college; however, the board has adopted this rule to apply to college activities. http://arcweb.sos.state.or.us/rules/cumindex_latest.html |
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