Procurement Guidelines per Executive Order

CONTRACT/GRANT/PURCHASE GUIDELINES

Division of Purchases

Executive Order Number 17 FY 08/09 directs the Division of Purchases to issue guidelines for contracts, grants and purchases within all funds. The following information is to be used by agencies to determine the necessity of an individual agreement or purchase and to provide the information needed to allow approval, when appropriate, at the Division of Purchases.

Contracts

New and renewal contracts for services to state agencies must be scrutinized carefully to determine if a true emergency exists or if a contract is required for continued, cost effective operation of necessary state functions. An emergency is defined as an immediate need to protect the health or safety of the public. Continued, cost effective operation is defined as those contracted services that must be performed because they are essential, maintain the most cost effective operation and no other alternatives are available.

These requirements do not apply to contracts necessary for the fulfillment of regulatory examinations for which the contract fees and all other expenses are reimbursed by the regulated entity; nor do they apply to contracts for certification examinations or other services directly paid by non-governmental third parties.

Grants

New and renewal grants issued for services to clients or for other purposes must be scrutinized carefully to determine if a true emergency exists or if a grant is necessary for continued, cost effective provision of necessary services. An emergency is defined as immediate need to protect the health or safety of the public. Continued, cost effective provision of necessary services is defined as those services that must be performed because they are essential and if suspended or ended would significantly impact those served.

Purchases (Capital and Non-Capital)

Agency heads are to develop internal processes to evaluate open market (under $5,000.00) purchases. Authorized staff should scrutinize purchases carefully to order just those supplies and items needed to maintain operations. Existing procurement card systems and blanket contracts remain in effect, but should be used with discretion.

Large-scale procurements (exceeding $5,000.00 per transaction) will continue to be processed through the requisition process.  An emergency is defined as immediate need to protect the health or safety of the public. Consideration will be given to essential items which must be purchased to maintain basic operations in a cost effective manner.

Confirmation requisitions must be pre-approved by Division staff before accepting any item. Confirmation will be limited to items meeting the emergency definition above.

The normal documentation and competitive processes for contracts, grants, and purchases remain unchanged. Each request, regardless of fund source, must include a completed Executive Order Compliance Form, which includes:

  1. A statement and supporting information to demonstrate the emergency or essential nature of the contract, grant, or purchase and the expected impact if delayed, postponed or rejected.
  2. A detailed description of the fund sources and any required match (whether immediate or by future journal or other transaction).
  3. Effort made to reduce the contract or requisition amount (ie: by work reduction, rate concessions, delay of purchase, etc.).
  4. Contact person for additional information.
  5. Signature of Commissioner or agency head, authorizing the contract, grant, or purchase to move forward.