Purchasing Methods

Once a need is determined by a user, the user will submit a requisition through the College’s Purchasing System, Colleague or NC eProcurement. The method used to acquire the commodity, printing, or contractual service needed will usually fall under one of the categories given below:

Small Purchases

• A small purchase is defined as the purchase of commodities, services, or printing, not covered by a term contract, involving an expenditure of $31,000.00 or less. (Please refer to “Purchasing Benchmarks” on page 11 for procedures for small purchases)

Local Purchases

• The faculty or staff member is requesting to purchase items from a local vendor.
• The faculty or staff member will be given a copy of the purchase order, and they will take a copy of that to the local vendor and purchase the items listed on the PO.
• The faculty or staff member will sign, date and mark the po# on the receipt and return that to the Business Office within 48 hours of the purchase.

**Those faculty or staff members who continually refuse to comply with this procedure will be prohibited from making local purchases. **

Open Market Solicitations

• An open market solicitation is the fair and open solicitation of offers for the purchase of a commodity, printing, or service not covered by a term contract. Competition shall be reasonable and adequate for expenditure and specific requirement. 

Statewide Term Contract (Goods or Services)

The North Carolina Administrative Code, 01 NCAC 5B.1101(b), requires all State Agencies, Community Colleges, and Universities to purchase from available Statewide Term Contracts. Community Colleges and Universities have been granted purchasing flexibility but must provide appropriate documentation when exercising the flexibility option.

• A “term contract” is a contract intended to cover normal requirements for a commodity, printing, or contractual service for a specified period based on predicted usage. 

  There are two basic types of term contracts:

  • “Statewide term contract” is established by P&C for College use.
  • “Agency specific term contract” is established by NCCCS (North Carolina Community College System) for use by the College when a commodity, printing, or service is not covered by a statewide term contract, and the contract value exceeds the College’s delegation.

  Commodities on statewide term contracts are competitively bid. Some considerations in establishing statewide term contracts are as follows:

  • Items most used or purchased by the state;
  • Obtain lower prices through volume discounts;
  • Transportation costs are included in the pricing
  • For some items, standards have been established and items have been tested
  • Warranties may be included in the contract

  • On-line catalogs are available within eProcurement for processing efficiency

    Every statewide and Agency specific term contract has different information pertinent to that contract.

    Most of the statewide term contracts for commodities specify a minimum and maximum quantity (or dollar amount). Orders below the minimum shall be obtained in accordance with College procurement procedures. Orders that exceed the maximum quantity must be forwarded to P&C for processing by the Purchasing Agent. For needs that exceed the maximum, P&C will determine if the order should be placed with the contractor at the contract price, negotiate the price with the contractor, or solicit new offers for the requirement. 

Waiver of Competition

• Under specific conditions competition may be waived. When seeking the waiver, the request must identify those specific facts or circumstances that support a waiver; simply repeating the language of the applicable category is not sufficient. (Please refer to “Purchasing Benchmarks/ Request for Waiver of Competition” for procedures for requesting a waiver of competition)

  01 NCAC 05B .1401
  Under certain conditions, and if deemed to be in the public interest, competition may be waived. To view the list of conditions permitting waiver, but are not limited to, please click on the following link: 01 NCAC 05B .1401.
  
  If a waiver of competition is being requested for one of the reasons above, the justification must be entered in unprinted comments on the requisition, or an e-mail may be sent to the Purchasing Agent referencing the requisition number. The Purchasing Agent reserves the right to seek additional justification for any request for a Waiver of Competition. 

Emergency or Pressing Need

The College may make purchases of commodities, printing, or services in the open market in cases of emergency or pressing need. 

Emergency

• A situation that endangers lives, property, or causes the immediate discontinuation of a vital program and which can be rectified only by immediate on-the-spot purchase (or rental) of equipment, supplies, materials, printing, or contractual services.
• When an emergency action is necessary and the expenditure is over the College’s delegation, prior approval should be obtained from P&C, if time permits.

• The College may negotiate with a potential vendor(s) to acquire the quality of commodity, service, or printing needed at the best price, delivery, terms, and conditions. A solicitation document requesting or inviting an offer(s) shall be issued, including standard language and terms and conditions issued by P&C. In instances where there is a question regarding terms and conditions, contact P&C.

  Contact Purchasing, Campus Security, and/or Operations & Facilities immediately, as appropriate, should such a situation arise. 

Pressing Need

• A pressing need is one arising from unforeseen causes including delays by contractors, delays in transportation, breakdown in machinery, or unanticipated volume of work. Lack of reasonable forethought or planning is not normally justification for a pressing need.
• When a pressing need action is necessary and the expenditure is over the College’s delegation, prior verbal approval should be obtained from P&C, if time permits. Subsequently, whether such prior approval was possible, if the expenditure is over the agency’s delegation, an explanation of the pressing need purchase shall be reported in writing to P&C.
• The College may negotiate with a potential vendor(s) to acquire the quality of commodity, service, or printing needed at the best price, delivery, terms, and conditions. A solicitation document requesting or inviting an offer(s) shall be issued, including standard language and terms and conditions issued by P&C, unless circumstances prohibit their use. In instances where there is a question regarding terms and conditions, contact P&C. 
  
  An approved eProcurement or Colleague requisition should be forwarded to the Purchasing Agent. “Pressing Need” requests will not be honored without a properly submitted requisition. If approvals are required, approvers should be notified immediately to make them aware that a requisition has been created and requires their approval. The Purchasing Agent should be contacted to make them aware of the situation. If the exact cost of an item is impossible to ascertain in advance or time does not permit, an estimated cost is to be entered on the requisition. However, a reasonable effort should be made to obtain the correct cost, before submitting the request. 

Conditional Grants 

Where a grant, donation, or special discount is predicated upon making a purchase from the grantor, the proposed transaction shall be explained in writing and shall have prior approval of the State Purchasing Officer (SPO). Prior to approval, the SPO shall consider the conditions placed on the grant, donation, or special discount, and how they will affect the agency and the State, the cost of agreeing to such conditions, and the market conditions. When a donation from a private source is predicated upon making the purchase or lease from a specific source, the purchase or lease may be made without prior approval of the SPO. This only applies if the donation from the private source covers 100% of the purchase price. 

Preferences

Nonprofit Work Centers for the Blind and the Severely Disabled
North Carolina has a preference statute that controls the sale of Nonprofit Work Centers for the Blind and the Severely Disabled industry products and prohibits their sale to the private sector. All agencies shall give preference to the Nonprofit Work Centers for the Blind and the Severely Disabled products in purchasing articles, products, and commodities which are needed, and which are manufactured or produced with the Nonprofit Work Centers for the Blind and the Severely Disabled and offered for sale to them. This preference requirement also applies to all community colleges. Delegation limits do not apply to products purchased from Nonprofit Work Centers for the Blind and the Severely Disabled.

The NC Department of Adult Corrections (Correction Enterprises)
North Carolina has a preference statute that controls the sale of prison industry products and prohibits their sale to the private sector. All agencies shall give preference to the NC Department of Adult Corrections products in purchasing articles, products, and commodities which are needed, and which are manufactured or produced with the State prison system and offered for sale to them by the NC Department of Adult Corrections. This preference requirement also applies to all community colleges (except printing). Delegation limits do not apply to products purchased from Correction Enterprises.

Products available from the private sector and offered by Correction Enterprises, including those on term contracts, shall be purchased from the private sector only when it is determined that the Correction Enterprises or Nonprofit Work Centers for the Blind and the Severely Disabled product will not satisfy the requirement or will not be available when needed. The purchase file should contain documentation from Correction Enterprises or Nonprofit Work Centers for the Blind and the Severely Disabled stating that the item(s) cannot be supplied. Competitive bidding shall not apply to articles or commodities available from Correction Enterprises or Nonprofit Work Centers for the Blind and the Severely Disabled.