BPM-301 Delegation of Authority
Revised October 20, 2010
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:
- 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.
- Reject bids, reissue bids, or purchase items or services, on the open market if they can be purchased at a better price than bid.
- 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.
- Contract with authors relating to publications of books by the University Press.
- Contract for the conduct of intercollegiate athletic programs.
- 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.
- 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:
- 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.
- Consultant agreements, when arrived at through a Request For Qualifications (RFQ) or sole source, if they exceed $500,000. 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.
- Rental and lease agreements on equipment for more than $500,000 for a sole source contract.
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 Chief Procurement Officer 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 and within limits delegated by the Chief Procurement Officer.
- 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 and within limits delegated by the Chief Procurement Officer. Awards for unique items or services (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.
- 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 within limits delegated by the Chief Procurement Officer. 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. All contract documents require approval as to form from the General Counsel.
- Information Technology and Telecommunication related contracts and agreements may require additional approvals in accordance with BPM 1204 – Information Technology and Telecommunications Purchases.
- Contracts and agreements for software licenses or software maintenance agreements no greater than $25,000 may be approved within limits delegated by the Chief Procurement Officer, 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 for Information Technology.
- Hospital/medical school preferred provider and pharmacy agreements may be approved within limits delegated by the Chief Procurement Officer, with approval of the contract documents as to form 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 Chief Procurement Officer has full authority to question the quality, quantity, kind and source of materials and services being requisitioned.
DEPARTMENTAL AUTHORITY AND RESPONSIBILITY
Purchases under $5,000 are delegated to authorized signers in each business unit as specifically allowed in University policy. It is the responsibility of the administrative head of the ordering department to assure that purchases initiated by departmental staff are made in accordance with University Procurement policy and in the University’s best interest.
University contracts have been established for many supplies, equipment and services to assure the best value for the University. Supplier contract pricing and performance are based on the University’s overall anticipated volume of purchases during the contract period.
All University departments are required to obtain needed supplies, equipment or services from University Procurement authorized suppliers, including from University supply centers or service departments, when departmental requirements can be reasonably met. This assures the University community of “least total cost” (best value) of supplies, equipment and services, and fulfills the University’s obligation to consolidate all of its requirements with the authorized supplier(s).
Purchases for Employees
Purchases for personal or private use by University personnel is prohibited. Exceptions (such as microcomputers and related peripherals) will only be made under special contracts approved as to form by the Office of the General Counsel.
Splitting or Stringing Purchases
Splitting or stringing of purchases is prohibited. Splitting or stringing purchases is the practice of issuing multiple purchase orders, procurement card transactions, requisitions, petty cash transactions, or other methods of purchasing like items or services, with the willful intent to circumvent the purchasing policy.
Splitting or stringing of purchases will be dealt with as an impropriety and may result in the withdrawal of delegated purchase authority. In addition, the person(s) responsible may be subject to disciplinary actions, including obligating the person(s) making such purchases to pay for the items or services.
For orders under $5,000 when the supplier will not accept a Procurement Card, a requisition must be submitted and a Purchase Order issued before any purchasing commitment is made to the supplier. Committing the University to a purchase without the issuance of a Purchase Order, except as authorized by Procurement, violates the University's Collected Rules and Regulations in regards to Delegated Authority.
With approval from the campus Vice Chancellor for Administrative Services/Managerial & Technological services, violation of this policy may subject the department account to a fee of $50 per transaction.
Gifts and Gratuities
It is the responsibility of all employees committing the University to the purchase of goods and services to adhere to the highest ethical standards in regard to the acceptance of gifts or gratuities. The specifics of this policy are covered in BPM 102 – Conflict of Interest. No gift or gratuity should be accepted regardless of value if it diminishes the objectivity of the employee in selecting a supplier.
Any employee who commits the University to a purchase, sale, lease or other arrangement without proper authorization may be personally liable for the transaction. The University is under no obligation to authorize payment for expenditures not made in compliance with applicable policies.
University employees 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.