University of Missouri

Business Policy Manual

Purchasing

BPM-301 Delegation of Authority

Revised April 4, 2004

The government of the University of Missouri is vested in a Board of Curators by the constitution of the State of Missouri, Article IX Section 9(a). The Board of Curators consists of nine members appointed by the Governor by and with the advice and consent of the Senate. The policies governing and controlling purchasing practices for the University have been established and approved by the Board of Curators and put in the Collected Rules and Regulations.

Delegation by the Board of Curators

The Board of Curators has delegated to the President authority for procurement of supplies, equipment and services in compliance with the following policies from the Collected Rules and Regulations:

The President is Authorized to:

1. Participate in cooperative purchasing arrangements with any public entity or group, and execute purchase contracts for the University under these arrangements, provided the procurement methods and procedures of such entity or group are consistent with University policies; and to procure supplies and equipment for use at the University of Missouri-Columbia Hospital and Clinics at contract prices arrived at through bids or negotiations by the University Hospital Consortium of Atlanta, Georgia, when in the best interests of the University.
    
2. Reject bids, reissue bids, or purchase items or services, on the open market if they can be purchased at a better price than bid.
    
3. Contract with other schools and colleges and with outside agencies for educational and training programs and for the use of facilities and instructors for regular University or extension courses.
    
4. Contract with authors relating to publications of books by the University Press.
    
5. Contract for the conduct of intercollegiate athletic programs.
    
6. Execute agreements for all intercollegiate athletic contracts for the scheduling of athletic contests, for broadcasting and telecasting athletic contests and for programs and concessions covering athletic contests.
    
7. Contract for purchase of items for resale in the normal operations of the University's bookstores or other auxiliary services, and waive bidding requirements when it is in the best interests of the University.

Board of Curators Approval Shall be Obtained for:

1. Purchases for unique items or services which do not lend themselves to competitive bidding when the cost is more than $500,000, except for proprietary licenses or maintenance agreements necessary for operation of University computing equipment, in which case the President shall be authorized to enter into these contracts.
2. Consultant agreements, when arrived at through a Request For Qualifications (RFQ) or sole source, if they exceed $250,000. Consultant agreements, when arrived at through a Request For Proposal (RFP) (where price is a component of the evaluation criteria), do not require Board approval.

Further Delegation

As authorized by the University President, the administrative purchasing policies are set and approved by the Vice President for Finance and Administration. The Vice President for Finance and Administration is further authorized by the President to govern and manage the purchasing and contracting operations and negotiations for resolution of these matters for the University in compliance with Board of Curators' policies.

The Vice President for Finance and Administration has delegated to the Associate Vice President for Management Services the authority and responsibility to govern and manage the purchasing and contracting operations of the University in compliance with Board of Curators' policies and Administrative policies.

• Purchases under $10,000 may be made on a discretionary basis without solicitation of bids upon authorization of the Manager, Campus Procurement Service Center, or designated members of the purchasing department staff, within limits delegated by the Chief Procurement Officer, UM. The Chief Procurement Officer, UM may authorize Procurement Card purchases up to $5,000, and/or departmental purchase orders up to $2,500 with such order numbers being delegated and assigned by the Campus Procurement Service Center.
   
• Purchases of $10,000 or more require solicitation of bids from known suppliers.
   
• Purchases of $25,000 or more require advertisement for bids published by an informal notice or one publication in at least two newspapers of general circulation in such places as are most likely to reach prospective bidders. Electronic media may be used in lieu of newspaper advertisements if and when it is believed this media will better serve the needs of the University.
   
• Unique items or services documented as sole source with a cost of $100,000 or less may be purchased without bids with approval of the Manager, Campus Procurement Service Center, within limits delegated by the Chief Procurement Officer, UM. Awards for unique items or services and consulting agreements (other than design professional agreements, which require approval of the Director, Facilities Planning and Development) of over $100,000 require approval of the Chief Procurement Officer, UM.
   
• Rental and lease agreements for equipment up to and including $500,000 for competitively bid contracts, or $100,000 for negotiated contracts, for the term of the contract, not to exceed five years, may be approved by the Manager, Campus Procurement Service Center, within limits delegated by the Chief Procurement Officer, UM. Equipment rental and lease agreements for over $500,000 for bid contracts, or sole source contracts over $100,000, or for more than five years, require the approval of the Chief Procurement Officer, UM. Rental and lease agreements for more than $500,000 for a sole source contract require approval of the Board of Curators. All contract documents require approval of the General Counsel.
   
• Contracts or purchase orders for competitively bid supplies, services, and equipment where the cost is $500,000 or less may be approved by the Manager, Campus Procurement Service Center, within limits delegated by the Chief Procurement Officer, UM, in accordance with University procurement policies and procedures. Contracts of more than $500,000 require the approval of the Chief Procurement Officer, UM.
   
• Contracts and agreements for software licenses or software maintenance agreements no greater than $25,000 may be approved by the Manager, Campus Procurement Service Center, within limits delegated by the Chief Procurement Officer, UM, with approval of the contract documents by the Office of the General Counsel. In addition, software licenses or software maintenance agreements over $25,000, or computer equipment purchases over $100,000 must be approved by the Vice President Information Systems.
   
• Hospital/medical school preferred provider and pharmacy agreements may be approved by the Manager, Campus Procurement Service Center, within limits delegated by the Chief Procurement Officer, UM, with approval of the contract documents by the Office of the General Counsel.

Approval Authority for Purchases

A requisition for purchase of supplies, equipment or services shall be approved only by a person who has been properly authorized by the University administration in accordance with established University policy. The Manager, Campus Procurement Service Center and the Chief Procurement Officer, UM, have full authority to question the quality, quantity, kind and source of materials and services being requisitioned.

• The Chief Procurement Officer, UM, is authorized to approve purchase orders and contracts within limits delegated by the Associate Vice President for Management Services.
   
• The Managers, Campus Procurement Service Centers, are authorized to approve purchase orders and contracts within limits delegated by the Chief Procurement Officer, UM.
   
• The Managers, Campus Procurement Service Centers, may delegate to their assistants and buyers the authority to approve purchase requisitions, orders and contracts within limits delegated to them.
   
• The Managers, Campus Procurement Service Centers, may delegate to departments authorization to transact small dollar purchases in accordance with prescribed University policies and procedures.

Employee Liability

Any employee who commits the University to a purchase, sale, lease or other arrangement without proper authorization may be personally liable for the transaction.

Managers, Campus Procurement Service Centers, Buyers and any other University employee acting in a procurement capacity may be liable for damages to the University if they injure the University through willful misconduct, bad faith, dishonesty or criminal negligence.