6.02 – Purchasing, Bidding, Receiving and Other Purchasing Related Functions

  1. Purpose

    To provide for a uniform and systematic method of purchasing the goods and services required by the College, to define the responsibilities and authority of the purchasing personnel and to advise of the purchasing requirements and limitations imposed by applicable law.

  2. Policy

    1. Authority to obligate institutional funds for purchases of supplies, materials, services and equipment is granted solely to the Vice Chancellor for Administrative Services and their designees, unless otherwise specifically approved by the Chancellor of the Board of Trustees.

    2. All purchases shall be made with regard to Federal, state and local laws and guidelines.

    3. All purchases shall be handled in accordance with commonly accepted business procedures and must be substantiated with the necessary records to satisfy audit and inventory requirements and all applicable law.

    4. In the circumstances that more restrictive requirements are necessary for the maintenance and administration of particular funds, such as grants, the more restrictive guidelines will take precedent.

  3. Procedures

    1. Purchasing
      The following guiding principles apply to purchasing of supplies and equipment:

      1. Sealed bids shall be received on all purchases in excess of $24,999. Electronic mail may be used to send and receive bids. Bidders will be given the option to return a bid by e-mail, fax or mailed hard copy as specified by the bid, with the time and date for response included in the bid. The Purchasing Department is responsible for insuring that the purchase is not split into components of less than $10,000 for the purpose of circumventing the college’s bidding requirements.

      2. Purchases between $10,000 and $24,999 shall be purchased on a competitive quotation basis. For these purchases, telephone, electronic or written quotes may be taken. Approval for vendor selection shall be granted by the Vice Chancellor of the requestor’s department.

      3. Purchases between $1,999 and $9,999 shall be purchased on a competitive quotation basis. For purchases in the amount of $1,999 – $9,999, telephone, electronic or written quotes may be taken. When appropriate, the requestor can assist the Purchasing Department by obtaining competitive quotes from vendors and attaching the quotes to the Purchase Requisition.

      4. The Chancellor may waive the requirement of competitive bids or proposals for products/services when he/she has determined that there exists a threat to life, property, public health or public safety or when immediate expenditure is necessary for repairs to college property in order to protect against further loss or loss of, or damage to, college property, to prevent or minimize serious disruption of college services, to ensure the integrity of college records or any other situation which may result in a hardship for the college. Any such purchases shall be reported to the Board of Trustees and ratified by them at their next regularly scheduled meeting.

      5. The Chancellor may waive the requirement of competitive bids or proposals for products/services when he/she has determined there is only a single feasible source for the products/services. The college shall prescribe guidelines and procedures for single feasible source procurement, which shall be consistent with the criteria delineated in section 34.044 RSMo and 1 CSR 40-1(4).

      6. Bids or quotations may be received from firms located within and without the college district.

      7. Firms shall be requested to submit all bids in a uniform manner.

      8. The college will normally award contracts to the vendor submitting the lowest bid that meets all requirements of the bid specifications. However, the college reserves the right to reject any and all bids. In the event of like quotations, purchases shall be made from the vendor the college determines is likely to provide the best service to the college. Other factors being equal, preference will be given to vendors whose primary place of business is within the college’s taxing district.

    2. Opening Bids

      1. Prior to the Board of Trustees monthly meeting at which formal bids are to receive official authorization, the Chancellor or his/her delegated agent is authorized to open bids and tabulate results for Board of Trustees consideration.

      2. Absent an emergency, a Purchase Recommendation should be presented to the Chancellor for his/her review no later than five working days before the Board of Trustees monthly meeting.

    3. Receiving Goods

      The following procedures apply to receiving goods at the college:

      1. All goods, unless otherwise directed by receiving personnel, shall be delivered to the designated college receiving facility.

      2. All goods delivered through UPS, FedEx, DHL or any other carrier are received, inspected for obvious damage, and logged into the daily receiving log.

      3. The goods are checked against the packing slips and the actual purchase order for accuracy and to identify items on back order. End users will call shipping and receiving concerning damages or discrepancies concerning the order.

      4. Items identified as fixed assets should be tagged as appropriate.

      5. All goods are delivered to the appropriate location, usually within 24 hours of arrival. Live and perishable items shall be delivered as soon as possible, with end users contacted immediately to coordinate delivery of potentially hazardous materials.

      6. All goods delivered have to be signed for upon internal delivery by the end user or their contact person, and delivery time is recorded in the delivery log.

      7. All delivery and receiving logs shall be filed on a daily basis, and records are kept for five years.

    4. Returning Goods

      1. A “Return Merchandise Form” must be filled out on all goods to be returned. Merchandise that is obviously damaged on arrival will be handled by receiving personnel. If the end user discovers reasons for merchandise to be returned, they must fill out the “Return Merchandise Form.” If the end user is requesting the return of the merchandise, they must attach a “Return Merchandise Form” with the proper budget code and preferred mode of transportation noted.

      2. End users are responsible for repacking merchandise to be returned in original shipping containers when possible.

      3. All returned merchandise must be sent back to shipping and receiving. Delivery personnel will pick up goods too large for the mail baskets.

      4. The vendor shall be contacted when the defect is discovered by the appropriate OTC personnel.

      5. Whenever possible, return freight shall be charged to the vendor for defective or damaged merchandise.

      6. All returns, unless size dictates otherwise, shall be shipped from Purchasing to the vendor.

    5. Credit Memos

      1. A copy of credit memos received by either Purchasing or Accounts Payable will be forwarded to Purchasing to be attached to the original shipping form.

      2. A copy of credit memos should be attached to the original Purchase Order.

    6. Standing Purchase Orders

      1. In certain instances when OTC makes recurring purchases from the same vendor in the course of a fiscal year, a standing purchase order, which obviates the need for multiple requisitions, may be appropriate. When a standing purchase order has been approved, payment is made from an approved invoice instead of from a requisition.

      2. A standing purchase order is appropriate for a monthly charge which does not vary from month to month or which varies very little from month to month (e.g., a standard monthly bill for rental of space)

      3. Before a Standing Purchase Order is established, it must be approved by the Chancellor, a Vice Chancellor or appropriate designee AND the Director of Purchasing.

      4. Once a Standing Purchase Order has been established, an invoice will be paid pursuant to the Standing Purchase Order only after it has been approved by two members of the OTC administrative team, at least one of whom must hold the position of Director/Dean, Vice Chancellor or Chancellor.

    7. Credit Cards

      1. Approval by the Chancellor or a Vice Chancellor is required for all individuals that use vendor credit cards.

    8. Petty Cash

      1. Request for reimbursement from petty cash shall be limited to purchases of less than $30 per transaction. All requests must have an original receipt attached, and the Chancellor or a Vice Chancellor or Dean must approve the reimbursement request as appropriate.

      2. Use of petty cash for purchases is appropriate only when the time required to utilize a requisition or check request would result in a hardship for the college and should not be used to circumvent the established purchasing policies.

      3. All college purchases should be made utilizing the college’s tax-exempt status. If an individual makes a purchase without utilizing the college’s tax exempt status, the individual making the purchases is personally responsible for any taxes incurred that the college was exempt from paying.

  4. Responsibilities


  5. Definitions


  6. Authority

    This policy is maintained under the authority of the Vice Chancellor for Administrative Services

  7. Related Policies

    6.02(b) Purchasing Cards

  8. Implementation

    1. Policy approved and adopted by the Board of Trustees on 9/8/97. Revised 12/9/02, 8/10/09 and 2/17/12.
    2. Purpose, procedures, responsibilities and definitions approved and adopted by the Cabinet on 1/10/12. Set for review 8/1/15