Procedure 5.14.5 Purchasing - History

Board Policies
Chapter 5 - Administration

Procedure History:

Date of Adoption: 7/1/96
Date of Implementation: 7/1/96
Date of Last Review: 5/09/24

Date & Subject of Amendments:

05/09/2024 – Amended to include several key changes and enhancements:

  1. Revision of Sealed Bid Threshold: The financial limit requiring sealed bids via public notice has been raised from $50,000 to $100,000.
  2. Adjustment of Purchasing Threshold for Quotations: The threshold for necessitating quotations has been increased from $25,000 to $50,000. Consequently, purchases equal to or less than $50,000 now require at least two quotations.
  3. Modification of Threshold for Sealed Bids or Direct Negotiation: The purchasing dollar threshold for mandating sealed bids or direct negotiation with a minimum of two sealed bids has been revised from the range of $25,000 to less than $50,000 to now between $50,000 and less than $100,000.
  4. Integration of Definitions for Clarity: To enhance the procedure’s clarity and ease of interpretation, a new definition for the term 'purchasing contract' has been added.
  5. Board Consultation Requirements: A new requirement has been established for Board consultation on all system office purchases valued between $1,000,000 and $3,000,000.
  6. Clarification on Single Source Contracting Exceptions: The procedure now includes clearer guidelines for the use of single source exceptions in contracting processes.
  7. General Procedure Modifications: Various modifications have been made to enhance the clarity and applicability of the procedure.

05/17/16 - Amended to comply with policy 5.14. Amended Part 4, subpart C to require single source exception form be used for purchases over $50,000. Added Part 4, subpart D3, exceptions to vice chancellor approval. Amended Part 6 to allow prepayments for services and fees in accordance with Minn. Stat. § 16A.065. Deleted Part 8 Rental of Equipment under $60,000” and Part 9 Computer Equipment. Made formatting changes for consistency between other policies and procedures.

1/25/12 -The Chancellor amends all current system procedures effective February 15, 2012, to change the term "Office of the Chancellor" to "system office" or similar term reflecting the grammatical context of the sentence.


3/25/10 - Part 2 amended to increase college and university authority to make purchases up to $100,000; clarifies that contracts over $100,000 need the approval of the vice chancellor-chief financial officer; Part 3 amended to require reviews by legal counsel and approval by vice chancellor-chief financial officer; Part 4 amended to include additional Minnesota Statutes. Subparts A, B, C, and D amended purchase limits. Subpart C bid solicitation is not required for purchases from Minnesota Department of Administration master contracts, Office of Enterprise Technology master contracts or Minnesota State Colleges and Universities master contracts or through cooperative purchasing agreements listed on the official system web site and authorized for use by the colleges and universities. Subpart D requires written approval. Subpart E amended to become sections 1 and 2, Minnesota Statutes updated. Part 6 amended to allow prepayment for registrations where it is required or a discount is provided. Part 8 amended to require quotations be kept not less than one year. Part 9 first paragraph was removed, and language was amended to require that legal counsel be contacted for all lease purchase agreements. Part 10 amended to define Targeted groups by Minnesota Statute, and added economically disadvantaged. Removes the Chancellor's requirement for annual establishment of goals and guidelines.

5/05/05 - Removed Part 11 language on fixed assets and renumbered parts 12 and 13 respectively.

6/21/00 - Contains language formerly in system procedure 5.5.2;

4/1999 (Part 4, Subp. D modified because of changes in MS 363.073)

7/1997 (Part 4, subd D, dollar figure went up from $50,000, due to Legislative changes)