BPM-4
A. Procurement Card (PCard) – also see BPM 4C
B. AggieMart Catalog
C. AggieMart Non-Catalog Requisition
D. Direct Payment
4.4 PROCUREMENT THRESHOLD REQUIREMENTS
A. Non-federally Funded Purchases
B. Federally Funded Purchases
4.5 PROCUREMENT SOLICITATION METHODS
A. Invitation to Bid
B. Request for Proposals (RFP)
C. Cooperative Programs
D. GSA or State Contracts
E. Sole Source
F. Emergency Purchase
4.6 EXEMPTIONS TO NEW MEXICO PROCUREMENT CODE
A. Conflict of Interest
B. Gifts and Gratuities
C. Subcontractor Kickbacks
A. Pre-Payment
B. Net Terms
C. Employee Reimbursement for Purchases
4.10 SPECIAL PROCUREMENT ACTIONS
A. Trade or Exchange of Used ItemsB. Purchase of Used Items
C. Professional Service Contracts
D. Lease Agreements
E. Rental Agreements
F. Maintenance and Service Agreements
G. Vehicles
H. Purchases on Federal Funding
The purchase of goods and services must be conducted in accordance with the New Mexico Procurement Code and must comply with New Mexico State University policies and procedures. Procurement activities must be performed in a manner that ensures the best value to the University. NMSU is committed to fairness and transparency in the procurement process. We strive to obtain bids, proposals, and information impartially and without favoritism.
This section applies to the procurement of all goods, equipment, or services unless otherwise exempted.
- Only the Chief Procurement Officer (CPO), their designees, and other University personnel designated by the President may commit NMSU to the procurement of goods or services. Purchases made without proper authorization are considered unauthorized purchases and can be considered the personal obligation of the individual who initiated the purchase.
- The procurement of goods or services must have a clear business purpose that supports the mission of the University and the purchase must be allowable on the funding type utilized. All university expenditures must be reasonable and necessary.
- Procurement on federal funds must comply with federal requirements and may require additional purchasing requirements.
- NMSU funds may not be used for personal gain or benefit, or for prohibited items or services
- The university may acquire goods or services in a manner that provides the best value to the institution.
- The designated NMSU CPO or NMSU CFO has the authority to make certain exceptions to ensure essential continued operations.
Other than the above, NMSU Employees are not authorized to negotiate and execute procurement-related contracts or commit NMSU to purchase agreements on behalf of the University. Employees who sign procurement-related contracts or attempt to bind the University by other means without authority may be subject to legal and University disciplinary action. Further, NMSU is not bound by and does not recognize as binding a contract signed or an order placed by an unauthorized Employee.
The PCard is the preferred procurement method for infrequent, low-dollar procurements. See PCard BPM Section 4C.
These are preferred best-value vendors established through competitively procured methods or a cooperative contract. As such, the requirements outlined in subsection 4 below do not apply to these purchases. Departments shall not purchase from these vendors outside of AggieMart without express approval from the Procurement Office.
C. AggieMart Non-catalog Item through Requisition and Purchase Order
For purchase of goods or services from a non-catalog vendor, the department shall initiate a requisition in AggieMart. The purchase request must follow the requirements outlined in subsection 4 - Procurement Thresholds Requirements. Once the requisition is fully approved, AggieMart will send the Purchase Order to the vendor. See the Procurement Website for more information on Aggie Mart non-catalog purchases.
An AggieMart Direct Payment Form may be used for payments associated with subsection 6 - Exemptions to New Mexico Procurement Code. Additionally, some purchases do not require a Purchase Order and can be submitted on a Direct Pay Request for payment. Refer to the Payment Guidelines on the Aggie Service Center web page for guidance. https://inside.nmsu.edu/asc/payment-guidelines/
4. PROCUREMENT THRESHOLD REQUIREMENTS
Competitive solicitations must be obtained for procurements of goods or services based on thresholds below, unless the purchase can be justified under alternative procurement method. The thresholds apply to a single purchase or the unit’s recurring purchases for the same goods or services during a fiscal year. Purchases are not allowed to be intentionally split to circumvent any procurement threshold.
A. Thresholds for non-federally funded purchases
|
Purchase Amounts |
Solicitation Requirement |
Procurement Method |
|||
|
$0 to $5,000 |
Best obtainable price determined by department |
AggieMart catalog purchase, or |
|||
|
$5,000 to $20,000 |
Best obtainable price determined by department |
AggieMart catalog purchase, or |
|||
|
$20,001 to $60,000 |
Existing contract or competitively sourced |
AggieMart catalog purchase, or |
|||
|
Greater than $60,000 |
Existing contract or competitively sourced |
AggieMart catalog purchase, or |
B. Thresholds for federally funded purchases
Requirements for purchases made with federal funds follow the Federal Acquisition Regulation thresholds.
|
Purchase Amounts |
Solicitation Requirement |
Procurement Method |
|
$0 to $20,000 |
Best obtainable price determined by department |
AggieMart catalog purchase, or |
|
$20,001 to $350,000 |
Lowest price |
AggieMart catalog purchase, or |
|
Greater than $350,000 |
Existing contract or competitively sourced |
AggieMart catalog purchase, or |
A. Invitation to Bid
If the requested goods or services exceed the thresholds listed in subsection 4 ($60,000.00 non-federal or $350,000 federal), and when the best price is the determining factor, an Invitation to Bid is the best procurement method.
B. Request for Proposals (RFP)If the requested goods or services exceed the thresholds listed in subsection 4 ($60,000.00 non-federal or $350,000 federal), and price is not the only determining factor, an RFP is the best procurement method. Determining factors for RFPs include, but are not limited to, experience, familiarity with Higher Ed, and past performance.
To initiate an Invitation to Bid or a Request for Proposals (RFP), submit a requisition for Call for Bid or Proposal in AggieMart. The Requisition must be accompanied by a fully completed sourcing form.
For more information on the process, contact your Procurement Business Partner. Once a bid or RFP is awarded, the Call for Bid or Proposal requisition will be returned to the department to update it to reflect the awarded vendor and bid/RFP dollar amount, initiating the purchase order.
C. Procurement Cooperative ProgramsThe university uses cooperative pricing agreements that award contracts through a competitive process. Bids or proposals are not required when utilizing cooperative agreements. See list of commonly used agreements: Cooperative.Existing-Agreements.pdf
D. GSA or State ContractsThe university utilizes Federal (GSA) and State Procurement Contracts. Bids or proposals are not required when utilizing these contracts.
E. Sole Source ProcurementA contract may be awarded without competitive solicitation when Procurement Services makes a determination, after evaluating the Sole Source Justification submitted by the department, that there is only one source for the required goods or services. Procurement Services shall conduct appropriate negotiations regarding price, delivery, and quantity to obtain the most advantageous price to NMSU.
Sole source procurements exceeding the $60,000.00 non-federal or $350,000 federal thresholds are required to be posted on the NMSU website for 30 days before the award. The University is required to post specifications/scope of work for requested goods/services, proposed vendor, and amount of purchase. The Sole Source Justification form will be subject to public scrutiny and may require expanded details. If the sole source justification is based on “per terms of grant or contract driven”, Procurement Services will require justification of why other substitutes are unacceptable.
Vendors can view a potential sole source award and challenge or protest. A sole source purchase can be awarded at the end of the 30-day posting period without a challenge. If the sole source is challenged, a formal bid or request for proposal may be required. Departments need to plan well in advance of a sole source purchase.
F. Emergency PurchaseAn emergency condition is a situation that creates a threat to public health, welfare, safety, or property such as may arise by reason of floods, epidemics, riots, equipment failures or similar events. The existence of the emergency condition creates an immediate and serious need for services or construction that cannot be met through standard procurement methods. An emergency procurement is permissible when an emergency condition exists. Purchases that could have been reasonably pre-planned or anticipated shall not be considered an emergency condition.
A department must contact Procurement Services at 575-646-2000 and request authorization for emergency procurement before directing a vendor to provide goods or services. Procurement Services will authorize departments to make emergency procurements, provided that such emergency procurements are needed.
The Department must follow up with a written emergency justification form within three business days of event.
PMM-Emergency-Procurement-Determination-Request.pdf
6. EXEMPTIONS TO NEW MEXICO PROCUREMENT CODE
The NM Procurement Code lists exemptions in Chapter 13-1-98. This means the requirements of thresholds, postings and procurement methods listed above do not apply to these purchases. Procurement Services determines if these exemptions apply. General exemptions include:
- Utility services
- Travel
- Shipping
- Prepayments of subscriptions less than $10,000 and conference registrations
- Contracts with professional entertainers
- Certain library materials
NMSU employees are considered to be public servants and are expected to adhere to state law. Employees and Suppliers are asked to disclose any and all potential conflicts of interest to NMSU for appropriate review and disposition.
State law prohibits:
- Board members, school officials, and employees from selling goods or services to the institution they are affiliated.
- State employees participating directly or indirectly in procurement decisions if they or their immediate family (spouse, children, parents, or siblings) have a financial interest in the business seeking or obtaining a contract or purchase order.
Violations of these laws can result in significant penalties, including fines and imprisonment.
B. Gifts and GratuitiesNo employee of NMSU shall accept favors, gifts, or gratuities either directly or indirectly from any vendor, representative, or business firm. This includes free merchandise and “free gifts with purchase” provided by vendors. The policy applies to every employee regardless of the nature of position at NMSU.
C. Subcontractor KickbacksThe Anti-Kickback Act of 1986 (41.U.S.C.51-58) was passed to deter subcontractors from making payments and contractors from accepting payments for the purpose of improperly obtaining or rewarding favorable treatment in connection with a prime contract or subcontract.
Prohibits any person from:
- Providing, attempting to provide, or offering to provide any kickback;
- Soliciting, accepting or attempting to accept any kickback; or
- Including, directly or indirectly, the amount of any kickback in the contract price charge by a subcontractor to a prime contractor or a higher tier subcontractor or in the contract priced charged by a prime contractor to the United States.
The Act also:
- Imposes criminal penalties on any person who knowingly and willfully engages in the prohibited conduct addressed in this subsection.
- Provides for the recovery of civil penalties by the United States from any person who knowingly engages in such prohibited conduct and from any person whose employee, subcontractor, or subcontractor employee provides, accepts, or charges a kickback.
Individuals who become aware of violations of this provision shall immediately report the incident to Audit Services or file a report through EthicsPoint.
A. PrepaymentState law does not permit prepayment for the delivery of goods and services. Vendors generally invoice NMSU for goods and services after delivery.
B. Net TermsNMSU’s standard payment terms for Purchase Order transactions are net 30 days from date of invoice. Exceptions to these terms are:
- Terms that offer discounts for prompt payment, such as 2% 10 days Net 30 days, or
- Terms that have been agreed to by the vendor and Procurement Services
Except for travel reimbursement, the university requires that goods and services be procured through the approved procurement options listed in subsection 3 – Procurement Options above. In the event that extenuating circumstances prevent the issuance of a purchase order or the use of a PCard, employees may request a one-time reimbursement for a business expense as long as it is under $1,000, there are no funding restrictions, and the reimbursement complies with university expenditure rules. Reimbursements should be infrequent. If reimbursements become routine or are not compliant, they will not be reimbursed. In the event there is a bona fide reason for an employee out-of-pocket expense to occur, prior approval is required by submitting a request ticket in Aggie Service Desk (ASD). Reimbursement for goods or services is requested on a Payment Request form and must be accompanied by receipts supporting the purchase. All receipts must be identifiable as to payee, and nature and amount of expenditure.
NMSU is an agency of the State of New Mexico and is exempt from all applicable federal and most State taxes. New Mexico Gross Receipts Tax (NMGRT) should be paid on services.
NMSU’s State Tax Exempt Certificate Number is 01-507888-004. Tax exemption is for University use only and not for personal use.
10. SPECIAL PROCUREMENT ACTIONS
Departments are not authorized to sell, trade, or dispose of any item of any reasonable value at any time. This function shall be handled by Central Property only. When a purchase involves a trade or exchange as partial payment, a description of the property and the NMSU tag number (if assigned) is required on the Purchase Requisition. See xx (or contact xx) for more information.
B. Purchase of Used ItemsWhen procuring used items with an estimated cost of five thousand dollars ($5,000) or more, the procurement shall be treated as if procuring new items. In addition, used items require a written warranty for at least ninety days after date of delivery and an independent "certificate of working order" by a qualified mechanic or appraiser.
C. Professional Service ContractsProfessional services mean the services of architects, archeologists, engineers, accountants, lawyers, and other persons or businesses providing similar professional services, which may be designated as such by a determination issued by the state purchasing agent or Procurement Services.
Services performed for $20,000 to $60,000 may be procured through a Professional Service Contract (PSC). Departments are allowed to procure professional services without PSC when the total expense is equal to or less than $20,000 by initiating a purchase requisition.
D. Lease AgreementsA Lease agreement is the acquisition of tangible personal property by means of a contract in which the leasing agent (Supplier) conveys to the lessee (NMSU) the use of the property for a specified term. At the end of the lease term, the tangible personal property is either returned to the leasing agent or NMSU may have the option to purchase the tangible personal property. Leases can be taxable or non-taxable transactions; the controller’s office will advise for clarification.
E. Rental AgreementsA rental agreement is a term agreement involving payment for use of goods. At the end of the rental agreement, the goods are returned to the supplier. Rentals are taxable transactions
Licensing, rental and lease agreements are not legally binding until signed by an authorized representative of Procurement Services.
A rental agreement for Real Property needs to be initiated, reviewed and approved by the Real Estate Office.
F. Maintenance and Service AgreementsA maintenance/service agreement is a contract between NMSU and a supplier, authorizing the supplier to perform routine maintenance and service on equipment owned or leased by a department. All service contracts must be signed by Procurement Services.
When renewing a maintenance/service agreement, it is the department’s responsibility to provide Procurement Services with updated rates from the vendor.
G. VehiclesNMSU Departments seeking to acquire a vehicle must submit a Vehicle Acquisition Request form (VAR) signed by the College Dean or Vice President responsible for that department for each proposed vehicle to be acquired by purchase from a vendor, interdepartmental transfer or donation by person entity outside of NMSU, prior to submitting a requisition to Procurement.
H. Purchases on Federal FundingVendors that provide goods or services over $25,000 are required to be registered with Sam.gov and must have an active registration before issuance of a purchase order. https://sam.gov/
13-1-30 B NMSA 1978 states when procurement involves the expenditure of federal funds, the procurement shall be conducted in accordance with mandatory applicable federal law and regulations. When mandatory applicable federal law or regulations are inconsistent with the provisions of the New Mexico Procurement Code, compliance with federal law or regulations shall be deemed in compliance with the Procurement Code.
- Equipment Screening
Federally funded equipment purchases over $10,000 (over $25,000 for Computer Equipment) require an Equipment Screening Form. Equipment screening procedures may be found in section 1C.10.05.
- Flowdown Clauses
Purchase Orders $10,000 or greater (2 CFR § 200.67 – Micro-purchase, Memorandum Statutory Changes to the Micro-Purchase 6/20/2018) shall contain all flowdown clauses as required by the Federal Acquisition Regulations (FAR). These flowdown clauses will be attached to Purchase Orders by Procurement Services.
On all procurements involving the use of federal funds, Procurement Services will ensure that the following certifications are in place when applicable:
Clause Title with applicable Dollar Threshold
52.209-5 Certification Regarding Responsibility Matters & 52.209-6 Protecting the Government’s Interest When Subcontracting with Contractors Debarred, Suspended, or Proposed for Debarment - In excess of $35,000
52.203-11 Certification and Disclosure Regarding Payments to Influence Certain Federal Transactions & 52.203-12 Limitation on Payments to Influence Certain Federal Transactions – When exceeding $150,000
CFR 200.236, 2 CFR Appendix II to Part 200 – Contract Provisions for Non-Federal Entity Contracts Under Federal Awards - In excess of $150,000
52.219-9 Small Business Subcontracting Plan - In excess of $700,000
52.215–12 Subcontractor Certified Cost or Pricing Data & 15.403-4 Requiring certified cost or pricing data (10 U.S.C. 2306a and 41 U.S.C. chapter 35) – At $750,000
52.230–3 Disclosure and Consistency of Cost Accounting Practices - In excess of $750,000
Compliance with this paragraph is required on all applicable subcontracts.