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Procurement at the University of Southern Indiana is the central purchasing agency of the University. Procurement has the sole authority to order supplies, materials, and equipment and obligate the University for contractual services. Without definite and particular permission of Procurement, no University department may order directly by the computer, email, letter, telephone, fax, or in any other manner. The University will assume no obligations, except on a previously issued and duly authorized purchase order. |
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Procurement, in conducting its business and discharging its responsibilities, is guided by three primary objectives: |
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Since Procurement is charged with the responsibility of obtaining maximum value for each dollar spent, it has the prerogative of selecting the vendor. Such selection may not be arbitrary, but shall be an objective decision based on knowledge of the market gained through competitive bidding. It is the policy of Procurement, where all things are equal, to give first preference to MWVBE (Minority, Women, and Veteran-owned businesses) vendors, then to local vendors, and finally to Indiana vendors. |
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As a basic buying tool, the use of competitive quotation requests is to secure the lowest and the best pricing available, to survey the market, foster a competitive climate, and provide a traceable audit record. The following guideline is offered not as a fixed limit, but rather to enable the buyer to make sound and consistent judgments compatible with the goals of the department: There are two ways to process University purchases:
Quote Thresholds: Catalog Orders (punch-out catalogs):
Non-Catalog vendor purchases (those using a Banner vendor):
Federally Funded Orders over $10,000:
Renovation/Construction Orders (Effective July 1, 2021):
Procurement by competitive proposals. The technique of competitive proposals is normally conducted with more than one source submitting an offer, and either a fixed price or cost-reimbursement type contract is awarded. It is generally used when conditions are not appropriate for the use of sealed bids. If this method is used, the following requirements apply:
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Flow Down Provisions for Federally Funded Grants The University of Southern Indiana has entered into an agreement with either the U.S. Government or another entity that has itself entered into an Agreement with the U.S. Government. That Agreement requires that certain federal grant provisions be made a part of any subsequent Purchase Order issued by the University of Southern Indiana related to furthering the performance or deliverables required under that Agreement. Equal Employment Opportunity All contracts shall contain a provision requiring compliance with E.O. 11246, "Equal Employment Opportunity," as amended by E.O. 11375, "Amending Executive Order 11246 Relating to Equal Employment Opportunity," and as supplemented by regulations at 41 CFR part 60, "Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor." Copeland "Anti-Kickback" Act (18 U.S.C. 874 and 40 U.S.C. 276c) All contracts and subgrants over $2000 for construction or repair awarded by recipients and sub-recipients shall include a provision for compliance with the Copeland "Anti-Kickback" Act (18 U.S.C. 874), as supplemented by Department of Labor regulations (29 CFR part 3, "Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States"). The Act provides that each contractor or subrecipient shall be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he is otherwise entitled. The recipient shall report all suspected or reported violations to the Federal awarding agency. Davis-Bacon Act, as amended (40 U.S.C. 276a to a-7) When required by Federal program legislation, all construction contracts awarded by the recipients and sub-recipients of more than $2000 shall include a provision for compliance with the Davis-Bacon Act (40 U.S.C. 276a to a-7) and as supplemented by Department of Labor regulations (29 CFR part 5, "Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction"). Under this Act, contractors shall be required to pay wages to laborers and mechanics at a rate not less than the minimum wages specified in a wage determination made by the Secretary of Labor. In addition, contractors shall be required to pay wages not less than once a week. The recipient shall place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation and the award of a contract shall be conditioned upon the acceptance of the wage determination. The recipient shall report all suspected or reported violations to the Federal awarding agency. Contract Work Hours and Safety Standards Act (40 U.S.C. 327-333) Where applicable, all contracts awarded by recipients over $2000 for construction contracts and over $2500 for other contracts that involve the employment of mechanics or laborers shall include a provision for compliance with Sections 102 and 107 of the Contract Work Hours and Safety Standards Act (40 U.S.C. 327-333), as supplemented by Department of Labor regulations (29 CFR part 5). Under Section 102 of the Act, each contractor shall be required to compute the wages of every mechanic and laborer based on a standard workweek of 40 hours. Work over the standard workweek is permissible provided that the worker is compensated at a rate of not less than 1 1/2 times the basic rate of pay for all hours worked more than 40 hours in the workweek. Section 107 of the Act applies to construction work and provides that no laborer or mechanic shall be required to work in surroundings or under working conditions that are unsanitary, hazardous, or dangerous. These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence. Rights to Inventions Made Under a Contract or Agreement Contracts or agreements for the performance of experimental, developmental, or research work shall provide for the rights of the Federal Government and the recipient in any resulting invention by 37 CFR part 401, "Rights to Inventions made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements," and any implementing regulations issued by the awarding agency. Clean Air Act (42 U.S.C. 7401 et seq.) and the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.), as amended Contracts and subgrants of amounts over $100,000 shall contain a provision that requires the recipient to agree to comply with all applicable standards, orders, or regulations issued under the Clean Air Act (42 U.S.C. 7401 et seq.) and the Federal Water Pollution Control Act as amended (33 U.S.C. 1251 et seq.). Violations shall be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA). Byrd Anti-Lobbying Amendment (31 U.S.C. 1352) Contractors who apply or bid for an award of $100,000 or more shall file the required certification. Each tier certifies to the tier above that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any Federal contract, grant or any other award covered by 31 U.S.C. 1352. Each tier shall also disclose any lobbying with non-Federal funds that takes place in connection with obtaining any Federal award. Such disclosures are forwarded from tier to tier up to the recipient. Debarment and Suspension (E.O.s 12549 and 12689) No contract shall be made to parties listed on the General Services Administration's List of Parties Excluded from Federal Procurement or Nonprocurement Programs in accordance with E.O.s 12549 and 12689, "Debarment and Suspension." This list contains the names of parties debarred, suspended, or otherwise excluded by agencies, and contracts declared ineligible under statutory or regulatory authority other than E.O. 12549. Contractors with awards that exceed the small purchase threshold shall provide the required certification regarding its exclusion status and that of its principal employees. Public Works Projects Any Public Works projects over $150,000 must be advertised two times and must have a public bid opening. The amount required for a bid bond, performance bond, and the legal contract is $150,000. If the project is under $150,000, it does not need to be advertised and does not require a public bid opening. Emergency Exception When an emergency arises which could not be reasonably foreseen, and health, welfare, or safety requires immediate action and the project is estimated to be more than $25,000, Procurement Services may contract for a project without advertising for bids if quotes are obtained from at least two (2) persons or firms known to deal in the work required to be done. Such action should be recorded with the Board of Trustees at its next meeting, along with the names of the parties invited to quote on the project. Sales Tax Exemption As a public institution, the University is exempt from paying state and city sales and use tax on items purchased for University use. Individuals authorized to purchase items with University funds should not pay sales tax. To obtain a Sales Tax Exemption form, contact Becky Weinzapfel at 812-464-1847 or email. |